Banks’ CSR spending slumps

Banks' spending on socially impactful schemes as part of their corporate social responsibility (CSR) fell in the second half of 2023, said a central bank report yesterday.

During the July-December period of last year, banks spent Tk 353 crore on CSR-related activities, which was 31 percent lower than that in the same period a year earlier.

It was also lower than the amount banks spent in the first half of 2023.

"CSR expenses have dropped significantly for education, health, environment and adaptation to climate change," the Bangladesh Bank said in its report.

The BB uses the report to assess performance indicative guidelines for CSR expenditure allocation and end-use oversight to ensure the money benefits the society.

It showed that spending for health, and activities to help reduce the impact of climate change fell by a third in the July-December period of 2023 compared to the previous six months.

The BB said 20.65 percent of total CSR spending in July-December was for educational purposes, such as providing scholarships to meritorious students.

Healthcare related activities accounted for 20.48 percent of total spending. In case of initiatives for climate change adaptation and environment, the ratio of spending was just 4 percent of the total.

Other sectors, including distribution of warm blankets, contribution to the Prime Minister's Relief and Welfare Fund, and sports, accounted for 54 percent of total CSR expenditure in the period.

Central bank data showed that private banks were responsible for 97.5 percent of total CSR spending during the second half of 2023 followed by foreign banks and state-run banks.