HDFC Bank Donated Maximum Money in CSR in 2024, Check Top 10 Companies
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In the financial year 2024 (FY24), India’s publicly listed companies significantly boosted their Corporate Social Responsibility (CSR) spending, driven by a sharp rise in profits. According to a report from PRIME Database, CSR spending grew by 16% compared to the previous year, reaching ₹17,967 crore, up from ₹15,524 crore in FY23.
What is CSR?
Corporate Social Responsibility (CSR) means companies doing activities to give back to society — like helping poor people, promoting education, protecting the environment, supporting healthcare, etc.It’s a way for companies to not just focus on making profits, but also to do good for the community and the country. Companies must spend at least 2% of their average net profits of the last 3 financial years on CSR activities.
Top Spenders in CSR
Leading the way in CSR expenditure was HDFC Bank, which allocated an impressive ₹945.31 crore. Reliance Industries followed closely, spending ₹900 crore, while Tata Consultancy Services (TCS) contributed ₹827 crore, and ONGC spent ₹634.57 crore. Other companies such as Tata Steel, ICICI Bank, and Indian Oil Corporation (IOC) also made notable contributions, reinforcing the growing focus on corporate responsibility.
This increase in CSR spending follows three years of relatively stable expenditure and aligns with an 18% rise in the average net profits of listed companies over the past three years. The profits form the base for calculating the mandatory 2% CSR expenditure under India’s CSR law.
CSR Spending and Market Capitalization
Here’s a breakdown of the top 10 companies and their CSR contributions in FY24:
| Rank | Company | CSR Expenditure (₹ crore) | Market Capitalization (₹ lakh crore) |
|---|---|---|---|
| 1 | HDFC Bank | 945.31 | 10.99 |
| 2 | Reliance Industries | 900.00 | 20.10 |
| 3 | TCS | 827.00 | 14.02 |
| 4 | ONGC | 634.57 | 3.37 |
| 5 | Tata Steel | 580.02 | 1.94 |
| 6 | ICICI Bank | 518.87 | 7.67 |
| 7 | Indian Oil Corporation (IOC) | 457.71 | 2.36 |
| 8 | Infosys Ltd. | 455.67 | 6.21 |
| 9 | ITC | 404.05 | 5.34 |
| 10 | Power Grid Corporation | 330.48 | 2.57 |
The CSR Law and its Requirements
Since the law’s implementation in April 2014, companies meeting certain criteria are required to allocate 2% of their average net profits over the past three years towards CSR activities. These companies must have:
- A net worth of ₹500 crore or more,
- A turnover of ₹1,000 crore or more, or
- A net profit of ₹5 crore or more.
For FY24, the average three-year net profit for 1,394 listed companies reached ₹9.62 lakh crore, a notable increase from ₹8.14 lakh crore in FY23. The mandatory CSR outlay for these companies was ₹18,309 crore, but the total spent was ₹17,967 crore. The small shortfall can be attributed to ₹2,329 crore being held in “Unspent CSR Accounts” for future use.
Key Areas of CSR Spending
Education remained the top focus for CSR funding, with ₹1,104 crore allocated towards educational initiatives. This was followed by healthcare, which received ₹720 crore in CSR contributions. However, sectors such as slum development, armed forces welfare, and disaster management received relatively little funding.
Environmental sustainability saw the sharpest rise in CSR expenditure, growing by 54% compared to the previous year, reflecting a growing commitment by companies to address environmental concerns.
CSR Compliance and Performance
Among the 1,394 companies studied, 98% (1,367 companies) fulfilled their CSR obligations. Interestingly, nearly 49% of companies exceeded the required CSR spend, while 30% spent exactly as mandated. On the other hand, 27 companies failed to meet their CSR spending requirements despite being obligated to do so.
Public Sector Undertakings (PSUs) also increased their contributions, with 66 PSUs collectively spending ₹3,717 crore in FY24, marking a 19% increase from ₹3,136 crore spent by 56 PSUs in the previous year.
CSR Committees and Governance
To ensure proper governance, companies that spend more than ₹50 lakh on CSR must establish a dedicated CSR committee, with at least three board members, including one independent director. Of the 1,028 companies that met this requirement, 990 had formed such committees, with many opting for larger committees to improve governance standards.
Conclusion
In FY24, Indian companies demonstrated a growing commitment to social responsibility, driven by rising profits and a stronger focus on sustainability and social causes. The increase in CSR spending highlights the importance of corporate responsibility in addressing India’s pressing issues in education, healthcare, and environmental sustainability. As corporate profitability continues to rise, it will be interesting to see whether the government revises CSR thresholds to better align with the needs of larger corporations while ensuring smaller companies also contribute meaningfully to society.
