Tuesday, June 18, 2024


Dhaka Tribune

CSR by banks dropped by 100C in first half of 2023

Spending on Corporate Social Responsibility (CSR) by Bangladeshi banks decreased by 16.59% year-on-year (YoY)

Update : 04 May 2023, 06:18 PM

Compared to the second half (H2) of FY22, the banking sector's spending on Corporate Social Responsibility (CSR) dropped by Tk102 crore in the first half (H1) of FY23.

According to Bangladesh Bank data, during the July-December period of FY23, the total CSR spending of banks was Tk513.7583 crore, which was Tk615 crore during the January-June period of FY22.

Data analysis also revealed that CSR in Bangladeshi banks decreased by 16.59% year-on-year (YoY).

The largest spending of CSR was for disaster management, which is nearly 68.81% or Tk353 crore. 

After that, the health sector received the second-largest funding, amounting to Tk63.98 crore, or 12.45% of the total CSR spending during the period under review. 

The funds were used for free medical camps and health services for the poor and the elderly.

The education category received the third-highest funding, Tk63.53 crore or 12.38% during the period under review. 

The environment and climate change sector accounted for nearly 2.4% of the funds during the July-December 2022 period.

A portion of the CSR funds, approximately 2.3%, was utilized for sports and cultural activities.

Since 2008, the Bangladesh Bank has taken the initiative for voluntary CSR activities for the country's 61 banks and 35 leasing companies.

Data analysis shows that more than 96% of CSR funds came from 43 private commercial banks, followed by foreign commercial banks with a share of nearly 3%.

On the other hand, leasing companies spent Tk4.03 crore on CSR, down by 7.6% during the period.

Requesting anonymity, a central bank official said that each bank makes their own CSR policy, which gets approved by the board of the respective bank. 

According to the rules, if a bank does not have an after-tax net income, it does not need to have a CSR budget.

According to the latest Bangladesh Bank guidelines, 30% of CSR expenditure can be spent on education, 30% on health, 20% on the environment and climate change mitigation and adaptation and the remaining 20% on other sectors, including disaster management, sports and culture.

However, while CSR activities are being carried out in Bangladesh and some other countries, most advanced and developing economies are now complying with ESG (environmental, social, and governance) guidelines.

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