The Yes Bank has failed to achieve its CSR obligation in the year 2019-20. The Bank which was supposed to spend a total of Rs 83.19 crore on CSR activities in the financial year 2018-19, could only spend Rs 40 Crore for the purpose. Though the company’s CSR policies are completely aligned with the UN’s Sustainable Development Goals, its actions remained non-aligned with its CSR commitments.
As the bank’s average net profit before tax for the last three years stood at Rs 4,100 crore, accordingly, the prescribed CSR budget, calculated as 2% of annual profit of the last three years, came out to be Rs 83.19 crore. According to the company, “the reason for not spending the prescribed and budgeted 2% is on account of delays in identified project approvals, the factors leading up to the moratorium which resulted in delayed fund deployment to implementation partners, and the RBI imposed moratorium on YES BANK which was an unforeseen instance.”
But last year also, the company had defaulted on its prescribed CSR budget. While the company believes in its ‘unique, multi-pronged approach’ towards delivering exponential CSR impact, but the fund allocation and project implementation present the different aspects.