CSR in the banking sector of India : The effect of CSR spending on the profitability and market value of selected banks

This study aims to investigate whether investments that prioritise social responsibility enhance Financial Performance by examining the effect of Corporate Social Responsibility (CSR) expenditures on the market capitalisation and profits of banks. A correlation and regression analysis were conducted on a sample of selected banks in India, including both private and public institutions, to investigate the link between CSR expenditure, profitability, and market capitalisation. The study shows a strong and statistically significant link between CSR spending and performance measures. Executives and decision-makers in the banking industry can use the findings to support CSR programs. Ultimately, the study backs up CSR in business strategy and adds to the evidence that CSR boosts market capitalization and profitability for banks.