CSR contribution is set to come as a yardstick for the banks in their future ratings. Corporate social Responsibility could potentially increase the clientele base of the financial institutions by helping to brighten up the image while acting as a potential branding instrument. In the future, a bank's performance may not be rated merely on conventional parameters but their credit disbursements in SME and agriculture as well as CSR contribution are also to come into play. These parameters are also likely to included in the next ratings and other similar performance evaluators to ensure more transparency and competitiveness in such activities.

The paper gives a picture of the CSR activities taken up by the banks. It also highlights the decisive contribution that banks make to communities development thanks to their locally focused project policy, based on the relationship with stakeholders.

The paper throws light on the various channels of delivery of CSR prevalent in Indian banks and various drivers of CSR. Furthermore, it highlights the areas of CSR addressed in corporate policies. The report also presents the latest ratings of public, private and MNC banks by the renowned networking platform Karmayog.

Some of the notable suggestion formed in the paper are every company must spend a minimum of 0.2% of its sales on  CSR activities (i.e. Rs 20 lakhs per 100 crore) A Corporate Sustainability section to be included in the Annual Report and preferably a separate Corporate Sustainability Report (as per the Global Reporting Initiative framework) to be published. Common guidelines on Environment, Health and Safety (EHS) applicable to most industries Industry-specific guidelines linked to the processes of that sector. Companies must use their core competence, skills and strengths while undertaking CSR activities. Create Inclusive Employment - for marginalized groups such as the physically-challenged, with a special emphasis on the local community.