2024-03-28 12:48:00
Banks have spent 924 crores 32 lakhs in 2023 in the social responsibility (Corporate Social Responsibility or CSR) sector. Which is 18 percent or 204 crore 67 lakh taka less than the previous year. In 2022, it spent 1 thousand 129 crores in this sector.
On Wednesday (March 27), Bangladesh Bank’s CSR report revealed these facts. The highest expenditure in the period under discussion was on health followed by education and environment and climate.
According to Bangladesh Bank guidelines, 30 percent of the total CSR expenditure of banks and financial institutions should be spent on education, 30 percent on health, and 20 percent on environment and climate change mitigation and adaptation. The remaining 20 percent is directed to be spent on income-generating activities, disaster management, infrastructure development, sports and culture and other sectors.
According to the report, 61 Scheduled Banks have spent Tk 924 crore 32 lakh in 2023. Out of this, the health sector spent the most 31.26 percent of the total expenditure or 289 crore rupees. The expenditure on education sector is 163 crore 10 lakh or 17.65 percent, the expenditure on environment and climate sector is 68 crore 17 lakh taka 7.38 per cent of the total expenditure, besides the expenditure on other sectors is taka 404 crore which is 43.72 per cent of the total expenditure.
According to the report, among the scheduled banks operating in the country, 5 banks did not spend a single rupee on CSR in 2023. These are Basic Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank and National Bank.
On the other hand, 9 banks did not earn net profit in 2022. They are Basic Bank, Bangladesh Agricultural Bank, Rajshahi Agricultural Development Bank, Bangladesh Commerce Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank, Padma Bank and National Bank of Pakistan.
However, 5 of these 9 banks spent on CSR in 2023 despite not earning net profit. The banks are Bangladesh Agricultural Bank, Rajshahi Agricultural Development Bank, Bangladesh Commerce Bank, Padma Bank and National Bank.
The 13 banks licensed after 2013 have a requirement to spend at least 10 percent of the previous year’s net profit on CSR in the following year. If a bank cannot make a net profit, they cannot spend on CSR. Apart from the new bank, whether other banks will spend on CSR is their own issue.
On review, it can be seen that 6 banks of the fourth generation (South-Bangla Agriculture and Commerce Bank Limited, Midland Bank Limited, Madhumati Bank Limited, Shimandan Bank Plc, NRB Commercial Bank Plc and Global Islami Bank Plc) have failed to comply with the conditions of the central bank during the discussed period.
Islami Bank Bangladesh has spent the most CSR among the banks this time too. In 2023, the bank has spent about Tk 100 crore in this sector. Dutch-Bangla Bank spent the second highest amount of Tk 94 crore. Jamuna Bank is in the third position by spending Tk 56 crore 73 lakh. Mercantile 55 crore 92 lakh, Shahjalal Islami Bank 53 crore 62 lakh, Al-Arafah 51 crore 32 lakh, Exim 43 crore 93 lakh, Southeast Bank 39 crore 69 lakh, UCB 38 crore 40 lakh and Bank Asia 32 crore 63 lakh. Shariah-based Islamic banks spend a portion of net profit, doubtful income, zakat and other funds on CSR.
The report also says that non-bank financial institutions have spent Tk 5 crore 36 lakh in the CSR sector during the discussion period. Of this, 38 percent was spent on health, 30 percent on education, and 21 percent on environment and climate.