Evaluating CSR’s Contribution to Enhancing Customer Trust and Loyalty in Mumbai’s Private Banking Domain.

Abstract

Corporate Social Responsibility emphasizesgiving back to the society. In a competitive banking market, CSR can be a key differentiator. This study explores the connection between Corporate Social Responsibility (CSR) initiatives and the development of customer trust and loyalty within the private banking sector in Mumbai. How the CSR initiatives focus on the areas of environmental sustainability, community development, employee engagement, and transparency, and how all these affect customers' perceptions of trust and loyalty in four major banks: ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Axis Bank. Using data from 68 customers, tests were applied to do hypothesis testing, which showed the factors and their significance. The findings suggest a very strong positive relation between CSR activities and customer trust and loyalty, offering valuable insights for banking institutions looking to strengthen customer relationships. The findings demonstrate a strong and statistically significant positive correlation between effective CSR initiatives and increased levels of customer trust and loyalty. This highlights the critical role of socially responsible practices in nurturing long-lasting and meaningful customer relationships. The research offers valuable insights for private banks seeking to establish a socially responsible brand identity while also improving customer satisfaction and maintaining a competitive edge. In essence, CSR extends beyond ethical responsibility—it serves as a strategic asset capable of influencing customer loyalty in an increasingly conscious and evolving market landscape.