Staff Reporter :
Banks in Bangladesh significantly reduced their spending on Corporate Social Responsibility (CSR) initiatives in 2024, with total expenditure falling by 33 per cent compared to the previous year, according to the latest data from Bangladesh Bank.
In 2024, banks collectively spent Tk 6.16 billion on CSR activities, a decrease of Tk 3.08 billion from the Tk 9.24 billion spent in 2023. The decline is even steeper when compared to 2022, when CSR spending totalled Tk 11.29 billion – representing a drop of over Tk 5.13 billion, or more than 45 per cent, over the two-year period.
As per existing regulations, only banks that record a net profit are eligible to undertake CSR activities, with the decision on whether or how much to spend left to the discretion of the individual banks. However, those that do engage in CSR are required to adhere to specific guidelines issued by the central bank.
Bangladesh Bank’s policy stipulates that 30 per cent of CSR funds must be allocated to education, 30 per cent to health, and 20 per cent to environmental and climate change-related mitigation and adaptation. The remaining 20 per cent may be used for income-generating activities, disaster relief, infrastructure, sports, and other sectors.
Despite these clear directives, the central bank’s report reveals widespread non-compliance. Of the Tk 6.16 billion spent in 2024, the largest share – 54 per cent or Tk 3.30 billion – was diverted to the loosely defined ‘other’ category. Meanwhile, only 17.5 per cent (Tk 1.08 billion) was allocated to education, 25.16 per cent (Tk 1.55 billion) to health, and just 3.62 per cent (Tk 223.6 million) to environmental initiatives.
The report further notes that six banks – BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, National Bank, and Padma Bank – did not undertake any CSR spending in 2024. Among them, Citizens Bank and ICB Islamic Bank spent CSR funds despite not earning a net profit in the previous year, which violates central bank policy.
In total, 61 scheduled banks were assessed in the report. Only 14 met the requirement of spending 30 per cent of CSR funds on education, 21 met the target for health sector spending, and just 9 banks complied with the environmental allocation criteria. Meanwhile, 44 banks exceeded the 20 per cent spending cap in the ‘other’ category, directly contravening policy.
Additionally, eight banks failed to post a net profit in 2023, making them ineligible for CSR activities. These were BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, ICB Islamic Bank, Citizens Bank, National Bank, and Padma Bank.
Among banks licensed after 2013, which are required to allocate at least 10 per cent of the previous year’s net profit to CSR, only NRB Bank and Community Bank met the target. Padma Bank and Citizens Bank, both of which suffered operational setbacks due to irregularities, did not conduct CSR activities due to the absence of profits.
Furthermore, nine banks – SBAC, Midland, Modhumoti, Simanto, NRB Commercial, Union, Meghna, Bengal Commercial Bank, and Global Islami Bank – generated net profits but failed to comply with the central bank’s CSR policy.
The decline in CSR spending and lack of adherence to regulatory guidelines raise concerns about the banking sector’s commitment to social responsibility and sustainable development, especially in critical areas such as education, healthcare, and environmental protection.
