Accounting Profit & Social Profit

Being economically capable and nurture social welfare is going to be a challenge before the banking sector. To evaluate the financial soundness of banks, consideration of Accounting Profit, and to understand how they protect social good, consideration of Social Profit – along with a SWOT (Strength, Weakness, Opportunity, Threats) analysis are necessary. In the coming times, banks must keep increasing Accounting Profit, become more economically competent, and at the same time, remain socially oriented on a large scale through CSR initiatives.

Currently, the Gross Domestic Product (GDP) of India, being nearly 7 cent, is planning to become the third largest economy in the world by 2030. Towards this end, banks have a key role to play in providing a need based, timely and hassle free bank credit which is one of the critical inputs. Because, no country shall think of being a healthy and prosperous one without ensuring a sound banking system and, India is no exception to this...(Read the full article in the August 2026 issue)