“We have been spending over 1 per cent of our profit on CSR even before the new law on corporate social responsibility (CSR), mandating every company to spend 2 per cent of its profit on such activities, came into effect. This is despite the fact that we are not legally bound to do so as we are not governed by the Companies Act.
“So, in order to streamline our CSR activities and better target our efforts, we’ve decided to create a new company called SBI Foundation. We hope to get the foundation running from July 1,” General Manager in charge of CSR and change management at SBI Vinod Pande told PTI.
Foundation DayIncidentally, July 1 is the Foundation Day of the bank, which was started as Bank of Calcutta in June 1806. Pande said that in fiscal 2014, the bank had spent Rs.115 crore on CSR, on a profit of Rs.10,891 crore, which was Rs.6 crore more than its 1 per cent profit.
Pande said the SBI Foundation has already been registered under Section 8 of the Companies Act, 2013, which applies to non-profit companies or organisations and will be headquartered in Mumbai.
The foundation has already taken an office in the 22-storey Air India Tower in the city, where the bank has taken four floors.
Asked about management structure of the foundation, he said the bank Chairperson Arundhati Bhattacharya will be the Chairman of the foundation and it will have a full-time Managing Director and Chief Executive.
The State Bank and its five associate banks are registered under a separate Act of Parliament, the SBI Act. Pande said once the foundation is registered and starts working, SBI and its five associates banks as well its arms will carry out their CSR work via the foundation.
Pande said he expected the total outgo from the group to be more than Rs.200 crore this fiscal.
Source : Thehindubusinessline