Top 10 CSR spenders in FY24: HDFC Bank, Reliance at the forefront – Check full list here

Fueled by a sharp rise in profits, India’s listed companies ramped up their Corporate Social Responsibility (CSR) spending by 16 per cent in FY24, touching Rs 17,967 crore, up from Rs 15,524 crore in the previous year, according to a report by PRIME Database.

Topping the list was HDFC Bank, which spent a massive Rs 945.31 crore on CSR activities, followed closely by Reliance Industries at Rs 900 crore, TCS at Rs 827 crore, and ONGC with Rs 634.57 crore.

The surge comes after three years of relatively flat CSR expenditures and mirrors an 18 per cent rise in average net profits (over the preceding three years) of listed companies — the base on which the mandatory 2 per cent CSR obligation is calculated under India’s CSR law.

The law, operational since April 2014, mandates companies with a net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, to allocate 2 per cent of their average net profits from the past three years towards CSR initiatives.

In FY24, the average three-year net profit for 1,394 listed companies jumped to Rs 9.62 lakh crore, up from Rs 8.14 lakh crore the previous year. Against a required CSR outlay of Rs 18,309 crore, companies spent Rs 17,967 crore. The marginal shortfall is explained by Rs 2,329 crore being parked in ‘Unspent CSR Accounts’ for future use.

PRIME Database Managing Director Pranav Haldea noted that given the substantial increase in corporate profitability over the last decade, it may be time for the government to consider revising the CSR thresholds upward to exclude relatively smaller companies, which was the original intent of the regulation.

Meanwhile, education remained the top priority area for CSR spending, attracting Rs 1,104 crore, followed by healthcare at Rs 720 crore. Sectors like slum development, armed forces welfare, and disaster management received minimal funding. Environmental sustainability saw the sharpest increase in spending, rising 54 per cent from the previous year.

Among the 1,394 companies studied, 1,367 (98 per cent) fulfilled their CSR obligations, while 27 companies failed to spend despite being mandated. Interestingly, nearly half the companies (49 per cent) exceeded their prescribed CSR spending, while 30 per cent spent exactly as required.

PSUs also ramped up their contribution — 66 PSUs spent Rs 3,717 crore in FY24, marking a 19 per cent jump from Rs 3,136 crore spent by 56 PSUs the previous year.

To ensure compliance, companies spending over Rs 50 lakh on CSR are required to form a dedicated CSR committee with at least three board members, including one independent director. Of the 1,028 companies eligible, 990 had such committees in place, with many opting for larger committees for better governance.