CSR in Banking: Customer Perspectives in Virudhunagar District, Tamil Nadu

Corporate Social Responsibility (CSR) has emerged as an important component of responsible and sustainable banking, extending beyond philanthropic activities to include responsible products and services, environmental sustainability, community development and financial inclusion. The present study examines the perceptions and expectations of bank customers towards CSR practices in Virudhunagar District, Tamil Nadu, with particular focus on product and service responsibility, environmental responsibility and community responsibility. The study is based on primary data collected from 60 bank customers selected through judgment sampling from different branches across the district. Secondary information was collected from journals, books, bank records and reliable sources relating to CSR and banking. Percentage analysis, factor analysis, chi-square test, Garrett ranking technique, discriminant analysis and multiple regression analysis were employed to analyse the data. Factor analysis identified three major dimensions of CSR: product and service responsibility, environmental responsibility and community responsibility. Education loans recorded the highest factor loading (0.907), followed by paperless banking practices (0.889) and agricultural loans (0.873). The chi-square analysis revealed that most socio-economic variables did not have a significant relationship with customers' CSR expectations, whereas literacy and transaction period showed significant relationships. Customers' major future expectations included special loans for differently-abled persons, higher returns on investments, reduction of air pollution and affordable interest rates on loans. Discriminant analysis further indicated that interest rates, infrastructure, secrecy, safety, service quality and recent technologies are important factors distinguishing customers according to their CSR expectations. The study concludes that banks need to integrate responsible banking services, environmental sustainability and community-oriented initiatives with effective CSR communication. Strengthening such practices can enhance customer trust, satisfaction and long-term relationships while contributing to inclusive and sustainable socio-economic development.