HDFC Bank, India’s largest private sector lender, has set an ambitious goal under its CSR (Corporate Social Responsibility) initiative, Parivartan. By 2025, the bank aims to improve the income of 5 lakh marginal farmers who currently earn less than ₹60,000 annually. This is a part of the bank’s long-term commitment to help vulnerable communities grow and thrive.
HDFC Bank has also imparted skill training, covering high-demand sectors like IT/ITeS, healthcare and manufacturing, to about 3.25 lakh youth in the last 10 years under its corporate social responsibility (CSR) initiative. The bank is currently working on over 100 projects in the area of Skill Development across different states, covering multiple sectors, including IT/ITeS, retail, healthcare, manufacturing and agriculture.
What is Parivartan?
Parivartan, which means “change” in Hindi, was launched in 2014 as HDFC Bank’s flagship CSR program. The initiative focuses on rural development, sustainable livelihoods, and fostering long-term socio-economic growth. According to the bank’s Deputy Managing Director, Kaizad M Bharucha, Parivartan has expanded over the years and is now one of India’s largest CSR initiatives, covering 28 states and 8 Union Territories.
Since its launch, the bank has invested over ₹5,100 crore into the program, with the mission of creating real and lasting impact across India.
Key Focus Areas
Increasing Farmer Incomes
- The bank’s main goal is to increase the income of 5 lakh marginal farmers by helping them adopt better agricultural practices and providing the necessary resources.
Skill Development
- By 2025, HDFC Bank aims to train 2 lakh individuals in skills that can help them become self-reliant. This skill training is critical for creating sustainable livelihoods, especially in rural areas.
Irrigation for Unirrigated Land
- One of the major goals under Parivartan is to bring 2 lakh acres of unirrigated land under irrigation. This will improve agricultural productivity and help farmers earn better incomes.
Scholarships for Underprivileged Students
- HDFC Bank also plans to provide scholarships to 25,000 meritorious students from underprivileged backgrounds. This will help them gain access to quality education and improve their future prospects.
Parivartan and the UN Sustainable Development Goals (SDGs)
HDFC Bank’s Parivartan aligns with 9 of the 17 United Nations Sustainable Development Goals (SDGs), which aim to address global challenges like poverty, inequality, education, and environmental sustainability.
According to Bharucha, “Economic and financial well-being of society is what every responsible lender should aspire for. As a bank built on trust, we are committed to contributing to the development of the nation.”
Growing CSR Expenditure
For the financial year 2023-24, HDFC Bank reported a CSR spend of ₹945.31 crore, which is nearly ₹125 crore more than the previous year. As per India’s Companies Act 2013, businesses that meet certain criteria must spend at least 2% of their average net profits over the last three years on CSR activities. For HDFC Bank, this amount is based on an average net profit of ₹47,294 crore, meaning it must allocate close to ₹950 crore for CSR this year.
A Focus on Rural Development
With over 65% of India’s population living in rural areas, HDFC Bank is making rural development a priority. About 70% of the Parivartan programs are focused on rural areas, aiming to bridge the development gap between urban and rural India.
Nusrat Pathan, the Head of CSR at HDFC Bank, emphasized that “Inclusive development is only possible when rural prosperity matches the growth seen in urban areas.”
Aiming for Carbon Neutrality
In addition to its social initiatives, HDFC Bank is also focused on becoming carbon neutral by 2031-32. The bank is actively working to reduce its emissions, energy, and water consumption. It plans to scale up the use of renewable energy in its operations, contributing to a greener future.
As part of its green initiative, HDFC Bank successfully raised USD 300 million through its first-ever sustainable finance bond issue in February 2024. This funding is being used to support green and social loans, including those for MSMEs and electric vehicles (EVs).
Conclusion
Through its Parivartan CSR program, HDFC Bank is not only supporting marginal farmers and underprivileged students but is also playing a significant role in rural development and environmental sustainability. With its ongoing initiatives and future goals, the bank continues to demonstrate its commitment to nation-building and creating positive, lasting change across India.
