CSR INITIATIVES OF FEDERAL BANK IN INDIA

INTRODUCTION

Federal Bank is an Indian private sector, scheduled commercial bank headquartered

in Aluva, Kochi. The Bank also has its Representative Offices abroad at Abu
Dhabi and Dubai.

With a customer base of 10 million, including 1.5 million NRI customers and a large
network of remittance partners across the world, Federal Bank claims to handle more than
15% of India's inward remittances. The Bank has remittance arrangements with more than
110 Banks/Exchange Companies across the world. The Bank is also listed in
the BSE, NSE and London Stock Exchange and has a branch in India's first International
Financial Services Centre (IFSC) at GIFT City in Gujarat.

HISTORY

The Federal Bank Limited (the erstwhile Travancore Federal Bank Limited) was
incorporated with an authorised capital of rupees five thousand at Nedumpuram, a place near
Tiruvalla in Central Travancore on 23/4/1931 under the Travancore Company's Act. It started
business of auction-chitty and other banking transactions connected with agriculture and
industry.

The bank name was named Federal Bank Limited on 2 December 1949, after
completing the formalities of Banking Regulation Act, 1949.

Between 1963 and 1970, Federal Bank took over Chalakudy Public Bank (est. 20 July
1929 in Chalakudy), Cochin Union Bank (est. 1963) in Trichur, Alleppey Bank (est
1964; Alappuzha), St. George Union Bank (est. 1965) in Puthenpally, and Marthandam
Commercial Bank (est. 1968) in Thiruvananthapuram. In 1970, Federal Bank became a
scheduled commercial bank and came out with its initial public offering in 1994.

The Bank became a Scheduled Commercial Bank in 1970, which also coincided with the
Silver Jubilee Year, since the Bank commenced its operation in Aluva.

In January 2008, Federal Bank opened its first overseas representative office in Abu
Dhabi.

In November 2016, Federal Bank opened its second UAE representative office, in Dubai.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) has been an inherited and inbuilt element of its
culture from the day the bank was founded. Our Founder's values and ethos based on trust got
embedded in the bank's policies and principles which reflect on its day to day business. CSR
in Federal Bank began with the first act of cultivating banking habits in an agrarian society -
to effectively utilize idle money for productive purposes.

Creating employment opportunity for a predominantly farming community was phase

two. The Bank is a commercial entity. It has to carry out its operations to generate profits to
fulfill its responsibility to all stakeholders. But its activities are carried out in the society and
it owes to the society for its business prosperity.
 
 While carrying out its activities, Bank is duty bound to ensure that its products and
services serve the best interests of the society. Bank has approved a policy for Sustainable
Development, which ensures that Bank's activities are conducive to sustainable social
welfare. In addition to this, Bank has to directly participate in social activities to help the
development of specific areas/segments.
 

Corporate Social responsibility (CSR) has always been a key component of the
operating philosophy of the Federal Bank Limited (hereinafter referred to as “the Bank”), as
evidenced by the activities of the public charitable trust, set up by the Bank in 1996, in the
fond memory of its Founder Shri. K.P.Hormis and the voluntary adoption of a formal Policy
on CSR by the Bank in 2011-12. Legal Framework of CSR Policy Section 135 of the
Companies Act 2013 (hereinafter referred to as the Act), effective from 1.4.2014, read with
the Companies (Corporate Social Responsibility Policy) Rules 2014, as amended from time
to time, lays down the legal framework for the Bank’s CSR policy, guided by the core values
of quality, reliability and trust, and passion for excellence pursued by the Bank at all levels .
Corporate Vision and objective of the Policy.

The Bank desires to make a meaningful contribution for the improvement of those
people who are at the bottom of the social pyramid, and thereby act as socially conscious,
well governed and successful corporate citizen of the country, maintaining highest standards
of corporate governance with the cooperation and involvement of its employees, constituents,
society, shareholders and other stakeholders including the Government. The Bank would be
ensuring that the activities are undertaken in a manner that every rupee spent for this purpose
will ultimately bring maximum relief to the intended beneficiaries, and thereby contribute to
the long term development of the society. The Bank aims to do this by engaging in activities
that provide socially and environmentally sustainable benefits for the beneficiaries,
measurable in economic terms. This would demonstrate the social commitment of the Bank,
in the same manner as it services the interest of the customers, employees and shareholders,
integrating the social and business goals. The activities will be only carried out in India, in
areas of operation of the Bank

Organization structure for CSR activities The CSR activities will be undertaken in
compliance of and within the legal framework referred above by the Board of Directors
(herein after referred to as “the Board”) on the basis of the CSR policy formulated and
recommended (on a long term, medium term and short term basis along with specified
timelines) by the CSR Committee of the Board (herein after referred to as “the Committee)
constituted within the frame work of the Act. The Bank has a specially designated CSR
Department that shall coordinate monitor, ensure, inspect and report to the Committee, that
the benefit reaches the intended beneficiaries. The Bank will constitute an Executive
Committee that will be responsible for review and sanction of CSR projects and activities. As
far as possible the activities would be implemented by the Trust set up the Bank, which will
act as a special vehicle for the implementation of CSR Activities, with due compliance of the
applicable statutory provisions. The specific details of the financial delegated powers for
review, sanction, recommendation and approval of CSR projects will be decided and held
separately. Geographical Coverage The Bank has a pan-India presence and will be extending
its CSR activities across all geographies in India. Higher focus would be given to areas where
the Bank has a significant presence and where the communities are socially backward, so as
to enable our staff to participate meaningfully in the programmes”. CSR initiatives covered
by the Policy In accordance with the corporate philosophy outlined above, and the frame
work of the Act as amended from to time, the thrust areas of CSR activities of the bank
would be:

1. Poverty Alleviation: Eradiating hunger, poverty, and malnutrition; Providing safe

drinking water, Housing to economically backward sections of society; Healthcare including
preventive healthcare and Trauma-care in high-ways; Improved sanitation and hygiene and
other measures for reducing inequalities faced by socially economically backward sections of
society including contribution to funds set up by central Government for promotion of
sanitation

2. Education and skill development: Promoting education including special education

and vocational education including skill development for children, women elderly and
differently abled and livelihood enhancement projects and other activities within the overall
objective of promoting education

3. Differently abled and mentally challenged: Undertaking activities designed to

ensure adequate and appropriate rehabilitation of persons who are differently abled and
mentally challenged.

4. Gender equality and welfare of Senior citizens: Undertaking activities for gender
equality including but not limited for empowerment of women, self-help groups and similar
organizations; setting up homes and hostels women and orphans; setting up old age homes,
day care centers and such other facilities for Senior citizens.

5. Ensuring environmental sustainability and ecological balance: Undertaking

activities with the overall objective of ensuring environmental sustainability and ecological
balance; protection of flora and fauna; animal welfare; Agro-forestry: conservation of natural
resources including maintaining quality of soil, air and water; renewable energy and other
activities within this overall objective of environmental sustainability including contributions
to funds set up Central Government rejuvenation of river Ganga .

6. Protection of national heritage: Providing protection of national heritage, art and

culture including restoration of buildings and sites of historical importance and works of art,
setting up public libraries; promotion and development of traditional arts and handicrafts.

7. Benefit of armed forces veterans: Taking up projects or activities intended for

providing benefit of armed forces veterans, war widows and their dependents.

8. Promote rural, nationally recognized, Paralympic and Olympic sports by

supporting training for attaining excellence in all areas of sports.

9. Contribution to the Prime Ministers National Relief Fund or and other Funds set
up by the Central Government for socio economic development and relief and welfare of the
scheduled castes, the scheduled tribes, other backward classes, minorities and women.

10. Providing financial assistance to technology incubators, located within academic

institutions duly approved by the Central Government for this purpose

11. Development projects for rural areas and areas declared by Government as slum
areas.

12. Prevention of child abuse and child labor to ensure education for all kids and
providing them facilities/support to the families to help them sending kids to the schools and
thereby prevent child abuse & child labor.

13. Support to Swatch Bharat Mission by constructing toilets for the poor, e-toilets at
public places, support for re-cycling of plastic, e-waste etc.