Photo : Collected
Banks’ corporate social responsibility (CSR) spending decreased by 18 per cent to Tk 924.32 crore in 2023 compared to the previous year.
Released on Wednesday, the Bangladesh Bank (BB) report on the CSR of 2023 said banks had spent Tk 924.32 crore in 2023, which was Tk 1,129 crore in 2022.
According to the report, the highest expenditure in 2023 was in the health sector, followed by education, and environment and climate change.
As per the BB guidelines, 30 per cent of the total CSR expenditure of banks and financial institutions should be spent on education, 30 per cent on health, and 20 per cent on environment and climate change mitigation and adaptation.
The remaining 20 per cent has been directed to be spent on income-generating activities, disaster management, infrastructure development, sports and culture, and other sectors.
The report said 61 scheduled banks spent Tk 924.32 crore in 2023. Out of this, the health sector saw the highest expenditure – 31.26 per cent or Tk 289 crore.
Besides, spending on education was 17.65 per cent or Tk 163.1 crore and the environment and climate sector was 7.38 per cent or Tk 68.17 crore. The expenditure on other sectors was 43.72 per cent or Tk 404 crore.
The CSR report said among the 61 scheduled banks operating in the country, five did not spend anything on CSR in 2023. They are BASIC Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank, and National Bank.
On the other hand, nine banks did not earn net profits in 2022. They are BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank, Padma Bank, and National Bank of Pakistan.
However, five of these nine banks spent on CSR in 2023 despite not making net profits. They are Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, Padma Bank, and National Bank.
The 13 banks receiving licences after 2013 have a requirement to spend at least 10 per cent of the previous year's net profit on CSR in the following year. If a bank cannot make net profits, it cannot spend on CSR.
The report found that six fourth-generation banks – South-Bangla Agriculture and Commerce Bank, Midland Bank, Madhumati Bank, Shimanto Bank, NRB Commercial Bank, and Global Islami Bank –failed to comply with the conditions of the central bank during the said period.
Islami Bank Bangladesh spent the highest amount on CSR among the banks. In 2023, the bank spent about Tk 100 crore in this area.
Moreover, Dutch-Bangla Bank spent the second highest amount of Tk 94 crore, and Jamuna Bank the third highest amount of Tk 56.73 crore, in the CSR sector.
Messenger/Fameema
