Banks have significant economic and social impact, as they play a crucial role in financing businesses, individuals, and governments. Therefore, banks are expected to be accountable for the social and environmental impacts of their lending and investment activities. This study aims to measure the effect CSRE of on Financial Performance the of Indian private banks. The study investigates how ―Corporate Social Responsibility Expenditure (CSRE)‖ and ―Financial Performance‖ (FP) are related by analyzing the Return on Assets (ROA) and Return on Equity (ROE) of five private banks over a five-year period from 2016 to 2021.The findings revealed that CSRE has a substantial beneficial effect on both ROA and ROE, which suggests that private banks in India that participate in CSR initiatives typically have stronger FP. Moreover, the study found a significant difference in the CSR expenditure, ROA, ROE, and size of selected Indian private banks. These results have significant implications for private banks in India and other emerging markets, as they suggest that CSR can be an effective strategy for improving financial performance while contributing to the societal well-being.

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Role of Corporate Social Responsibility of Banks in Emerging Markets in India

  • T. Srinivas,
  • K. Umadevi,
  • V. Anitha,
  • L. Muneendra Babu

摘要

Banks have significant economic and social impact, as they play a crucial role in financing businesses, individuals, and governments. Therefore, banks are expected to be accountable for the social and environmental impacts of their lending and investment activities. This study aims to measure the effect CSRE of on Financial Performance the of Indian private banks. The study investigates how ―Corporate Social Responsibility Expenditure (CSRE)‖ and ―Financial Performance‖ (FP) are related by analyzing the Return on Assets (ROA) and Return on Equity (ROE) of five private banks over a five-year period from 2016 to 2021.The findings revealed that CSRE has a substantial beneficial effect on both ROA and ROE, which suggests that private banks in India that participate in CSR initiatives typically have stronger FP. Moreover, the study found a significant difference in the CSR expenditure, ROA, ROE, and size of selected Indian private banks. These results have significant implications for private banks in India and other emerging markets, as they suggest that CSR can be an effective strategy for improving financial performance while contributing to the societal well-being.