Banks’ spending in Corporate Social Responsibility (CSR) has decreased by 18 percent to Tk 924.32 crore in 2023, compared to the previous year.
Bangladesh Bank (BB) report on CSR of 2023 released on Wednesday saw that banks spent Tk 924.32 crore in 2023, which was Tk 1129 crore in 2022. It shows that banks’ spending in the CSR sector decreased by 18 percent or Tk 204.67 compared with the previous year.
According to the report, the highest expenditure in 2023 was in the health sector followed by education and environment and climate change issues.
According to the BB 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.
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According to the report, 61 scheduled banks have spent Tk 924.32 crore in 2023. Out of this, the health sector spent the most 31.26 percent or Tk 289 crore of the total expenditure.
The spending on the education sector is 17.65 percent or Tk163.10 crore, and the expenditure on the environment and climate sector is 7.38 percent or Tk68.17 crore of the total expenditure. Apart from this, the expenditure on other sectors is 43.72 percent or Tk404 crore of the total expenditure.
According to the CSR report, among the 61 scheduled banks operating in the country, 5 banks did not spend a single taka 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 Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, Bengal Commercial Bank, Citizens Bank, ICB Islamic Bank, Padma Bank and National Bank of Pakistan.
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However, 5 of these 9 banks spent on CSR in 2023 despite not earning net profit. The banks are Bangladesh Krishi Bank, Rajshahi Krishi Unnayan 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, it cannot spend on CSR.
In analysing the report found that 6 banks of the fourth generation --South-Bangla Agriculture and Commerce Bank Limited, Midland Bank Limited, Madhumati Bank Limited, Shimanto 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 Plc has spent the highest CSR among the banks. 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 and Jamuna Bank is in the third position by spending Tk 56.73 crore in the CSR sector.