New Delhi [India], April 20 (ANI): Corporate Social Responsibility (CSR) spending by companies listed on the National Stock Exchange main board rose sharply by 23 per cent to Rs 22,212 crore in 2024-25, compared to Rs 18,011 crore in the previous financial year, according to a report by PrimeInfobase, an initiative of PRIME Database Group.

The increase in CSR expenditure was driven by a 22 per cent rise in the average net profit of these companies over the preceding three years, which determines mandatory CSR spending under regulatory norms, said Pranav Haldea, Managing Director, PRIME Database Group.

As per the Companies Act, eligible firms are required to spend two per cent of their average net profits of the last three financial years on CSR activities.

The report noted that CSR spending has maintained an upward trajectory, following a 16 per cent increase in 2023-24 after a period of relatively flat growth between 2019-20 and 2022-23.

Out of 2,142 companies listed on the NSE main board as of March 31, 2025, a total of 1,549 companies were mandated to undertake CSR spending, up from 1,399 companies in the previous year.

These companies were required to spend Rs 22,732 crore during FY25, but actually spent Rs 22,212 crore. The shortfall was attributed to unspent amounts being transferred to designated CSR accounts for utilisation in future years.

In terms of participation, 1,521 companies, or 98 per cent of those mandated, undertook CSR activities during the year.

Reliance Industries Ltd emerged as the top spender with Rs 1,309.5 crore, followed by HDFC Bank (Rs 1,068.03 crore) and Tata Consultancy Services (Rs 960 crore). The top 10 companies together accounted for 34 per cent of total CSR spending.

The report further highlighted that 70 per cent of companies increased their CSR spending compared to the previous year, while 48 per cent exceeded their prescribed CSR obligations.

Sector-wise allocation showed that education received the highest share of CSR funds, followed by healthcare, continuing trends seen in previous years.

State-wise, Maharashtra, Gujarat and Tamil Nadu were the top recipients of CSR funds, together accounting for a significant portion of the total expenditure.

The report also noted that spending by public sector undertakings rose 19 per cent to Rs 4,791 crore in FY25. (ANI)