CSR spending of banks, other FIs double in H1

The spending of the country's scheduled banks and other financial institutions (FIs) in their corporate social responsibility (CSR) programmes has more than doubled in the first half (H1) of this calendar year, compared to the previous six months.

Around 32 per cent of the total CSR spending in H1 was done by Islami Bank Bangladesh Limited (IBBL) alone, while seven banks made no CSR spending during the January-June period of 2022, according to the half-yearly report on CSR - released by the Bangladesh Bank (BB) on Wednesday.

The report showed that aggregated spending of the banks and other FIs in CSR activities in the first half of 2022 stood at over Tk 6.33 billion, up by 110 per cent from that of the previous six months (July-December 2021) when the figure was Tk 3.01 billion.

Of the total CSR funding in H1 of 2022, the banks contributed over Tk 6.29 billion, whereas contribution of the other FIs was only Tk 43 million, the half-yearly report stated.

In terms of sector-wise financing, the highest volume of Tk 4.61 billion was spent on disaster management, which was 73.33 per cent of the total amount.

The second highest Tk 800 million spent on education purposes (12.71 per cent). Health sector received the third highest of Tk 500 million (7.95 per cent), followed by sports and culture (Tk 136 million), and environment and climate (Tk 110 million).

The top banks in terms of CSR spending were IBBL (Tk 2.02 billion), Dutch-Bangla Bank (Tk 390 million), Premier Bank (Tk 299 million), Exim Bank (Tk 283 million), Mercantile Bank (Tk 221 million), Shahjalal Islami Bank (Tk 216 million), Al-Arafah Islami Bank (Tk 198 million), Prime Bank (Tk 163 million), Dhaka Bank (Tk 149 million), and Brac Bank (Tk 145 million).

The central bank, earlier this year, directed all the financial institutions to spend minimum 60 per cent of their CSR funds in education and health sectors (equally), and 20 per cent in environment and climate change sectors.

Seeking anonymity, a BB official said the central bank in last July directed the institutions to help the flood-affected people as a part of their CSR activities.

He also said the BB urged them to provide necessary relief materials under the CSR to the flood-hit people in the country's north and north-eastern regions as well as the coastal areas.

The relief materials, specified in the directive, included food, clothing, safe drinking water, medicine, portable stoves, portable solar lantern, etc.

"That's why, the CSR spending in disaster management was so high," he added.

When contacted, Managing Director of Mutual Trust Bank Limited Syed Mahbubur Rahman said the country witnessed devastating flood situation at its various corners on a few occasions, and the BB asked the institutions to spend CSR money in the affected areas.

"So, we, like the others, spent most of our funds on the relief-related activities to help the (flood-hit) people. The trend might continue, as the cyclonic storm 'Sitrang' damaged the coastal areas, while the winter season is approaching," added Mr. Rahman, also chief executive officer of the bank that spent Tk 137 million in CSR activities during the H1 of 2022.

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