Shaji KV, Corporate Social Responsibility (CSR) Head at Federal Bank, has urged policymakers to revisit CSR norms, saying relaxed eligibility criteria and higher mandated spending would allow more companies to participate and deepen community development efforts. In India, as corporate responsibility evolves amid regulatory changes and growing climate priorities, financial institutions are rethinking how community investments are planned and executed.
In an interview with BW Businessworld, Federal Bank's KV stated, “On the policy front, lowering eligibility thresholds such as turnover, net worth, or profit criteria could allow more companies to participate in CSR. There is also scope to increase the mandated CSR spending (currently 2 per cent) to expand impact and strengthen community development.”
Federal Bank has a long-standing CSR structure through the Hormis Memorial Foundation. How has the bank’s CSR strategy evolved in recent years, especially as social and environmental priorities change rapidly?
Federal Bank has been engaged in CSR initiatives since its inception, inspired by our founder, the late K.P. Hormis, who strongly believed in giving back to society. Even before CSR became mandatory, the bank had already begun its initiatives.
Over the years, our CSR focus has expanded to align with emerging social and environmental priorities. While healthcare, education, and skill development remain our core focus areas, we have strengthened our environmental initiatives. These include environmental protection programmes, Swachh Bharat activities, and our long-running “Seed” programme in association with Mathrubhumi, which encourages schoolchildren to plant saplings and cultivate green campuses, fostering awareness among students, parents, and communities.
Healthcare, education, and skill development account for a significant share of your CSR spending. How do you evaluate the long-term benefits of these initiatives?
In healthcare, our primary focus is cancer screening and treatment support, particularly for economically disadvantaged patients. We partner with nine major hospitals across India, including Assam Cancer Care Foundation, Tata Cancer Care Foundation, CMC Vellore, Indo-American Cancer Research Centre, Sri Shankara Cancer Research Centre, Bengaluru, MVR Cancer Research Centre, Kozhikode, Caritas Hospital, HN Reliance Foundation Hospital, Mumbai, and Bhati Hospital, Mumbai.
We support screening, treatment, and hospital infrastructure such as dialysis machines, ambulances, and critical medical equipment. Deloitte conducts impact assessments to evaluate long-term effectiveness.
In education, we award scholarships to 500 meritorious but financially disadvantaged students annually. Supported courses include B.Tech, MBBS, MBA, and B.Sc. Agriculture, Nursing, and new programmes such as B.Arch, BDS, and Veterinary Science. Around 2,400–2,500 students have benefited so far.
From an ESG perspective, what are the biggest challenges and what policy support could strengthen CSR-led community development?
A key challenge in our environmental initiatives is ensuring the long-term survival of planted trees. While plantation drives are common, sustained maintenance and protection are often lacking. Broader ESG matters are handled by other departments, but from a CSR perspective, implementation and follow-up remain critical.
On the policy front, lowering eligibility thresholds such as turnover, net worth, or profit criteria could allow more companies to participate in CSR. There is also scope to increase the mandated CSR spending (currently 2 per cent) to expand impact and strengthen community development.
How do you see the role of financial institutions evolving in CSR and climate action and how is the Federal Bank planning to remain relevant over the next five years?
Financial institutions have a unique advantage due to their extensive branch networks across rural and semi-urban India. This reach enables deeper community penetration than other corporates, allowing banks to play a larger role in grassroots CSR implementation and climate-related initiatives.
Looking ahead, the Federal Bank plans to focus on infrastructure support in healthcare and education. In healthcare, the bank aims to provide accommodation facilities for cancer patients and their caregivers, particularly those travelling long distances, to improve treatment continuity. In education, it supports the construction of school buildings in underserved areas.
Responding to the Union Budget 2026, allocations for renewable energy, green hydrogen, and sustainable finance create further pathways for the bank to align its projects with ESG priorities over the next five years.
Could you elaborate on your Skill Academy initiatives and the “Twice is Wise” digital inclusion campaign?
We operate eight Skill Academies across India, aimed at enhancing employability through industry-relevant training. Last year, two new academies were launched in Guwahati (managed by Don Bosco Institute of Management) and Faridabad (managed by Good Deed Foundation), while the remaining six are managed by SB Global.
Alongside skill development, the bank runs the “Twice is Wise” pan-India public awareness campaign to address digital literacy gaps, particularly in rural populations. The initiative educates people on cyber fraud prevention and digital safety and is not limited to bank customers. Leveraging our branch network across rural and semi-urban areas, we ensure these efforts reach grassroots communities effectively. |
