Title “Public Sector Banks as Agents of Rural Transformation: An Empirical Investigation into CSR and Socio-Economic”

Abstract

This study investigates the Corporate Social Responsibility (CSR) practices of Public Banks in Karnataka, with a focus on their contribution to financial inclusion and community development. Financial inclusion, defined as access to affordable and reliable banking services for society, is critical for promoting equitable economic growth and enhancing the livelihoods of marginalized populations. In Karnataka, Public Sector Banks have implemented CSR initiatives that extend beyond legal obligations, addressing region-specific development challenges and gaps in access to financial related services. This article combines secondary data from the bank reports, CSR disclosures, government statistics, and scholarly studies with primary insights from a survey of 50 respondents, including bank personnel, community representatives, and program beneficiaries. The findings reveal that CSR programs have positively influenced financial literacy, banking access, and awareness of economic opportunities, with particular impact observed in education, healthcare, women’s empowerment, and rural livelihood development. The study identifies challenges, uneven outreach, resource constraints, and the need for the improved co-ordination with government schemes. Overall, the evidence suggests that targeted, well-structured, and sustained CSR initiatives can produce meaningful socio-economic benefits, particularly in underserved and rural areas. The study concludes by emphasizing the importance of aligning CSR strategies with local development priorities, enhancing transparency in monitoring outcomes, and fostering stronger partnerships between banks, government agencies, and civil society to maximize the potential of CSR in promoting inclusive and sustainable development across Karnataka.