Banks' CSR spending rises 34pc to Tk 1.98b

Corporate Social Responsibility (CSR) expenditure by scheduled banks in Bangladesh witnessed a notable uptick in the latter half of 2025, driven largely by significant contributions from private commercial lenders.

Total CSR spending during the July-December 2025 period stood at around Tk 1.98 billion, marking a 34.42 per cent increase from Tk 1.47 billion in the January-June period, according to the latest data from Bangladesh Bank (BB).

This reflects a growth of Tk 506.6 million in social spending within six months.

Sectoral analysis shows that education remained the primary focus of bank-led social initiatives.

Banks allocated Tk 642.4 million to the sector, accounting for 32.47 per cent of the total CSR outlay.

The funds were mainly used for scholarships, distribution of educational materials, and development of academic infrastructure.

The healthcare sector was the second-largest recipient, with expenditure of Tk 575.2 million, representing 29.07 per cent of the total spending.

Meanwhile, allocations for environment and climate change mitigation and adaptation remained the lowest among major categories, totalling Tk 292.9 million, or 14.81 per cent of the half-yearly expenditure.

Other sectors collectively received Tk 468.0 million, accounting for the remaining 23.65 per cent.

Private commercial banks (PCBs) continued to dominate CSR activities, contributing 79.16 per cent of total spending.

Of the 43 PCBs, 36 banks spent a combined Tk 1.57 billion during the period.

Foreign commercial banks also maintained a steady presence, with seven out of nine institutions spending Tk 330.2 million, accounting for 16.69 per cent of total CSR expenditure.

In contrast, contributions from state-owned and specialised banks remained limited.

Only three of the six state-owned commercial banks engaged in CSR activities, spending Tk 80.9 million, or just 4.09 per cent of the total.

The participation of specialised banks in CSR initiatives was negligible during the review period.

During the period, seven out of 10 Islamic Shariah-based banks conducted CSR activities using net profits after tax from the previous year, along with other sources.

Their total CSR spending amounted to Tk 296.5 million, representing about 14.99 per cent of overall sectoral CSR expenditure.

Bank insiders said the 34 per cent rise in CSR spending reflects improved earnings and a stronger focus on social responsibility, particularly in education and healthcare, which deliver visible and immediate impact.

Private banks, they noted, are leading efforts to strengthen public trust and corporate reputation.

However, they acknowledged that spending on environment and climate initiatives remains relatively low.

Going forward, banks may place greater emphasis on structured and impact-driven CSR programmes, particularly in climate resilience and sustainable development, they added.

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