The expenditure for activities under the corporate social responsibilities by the scheduled banks increased by 39.22 per cent in 2012 against a 6.07-per cent rise in 2011.
According to the latest Bangladesh Bank data, the banks spent Tk 304.66 crore for CSR activities in last year while they spent Tk 218.83 crore in 2011.The banks’ CSR expenditure was Tk 232.977 crore in 2010.
The majority of the banks are now spending CSR fund on their own consideration as the BB is yet to formulate any policy on the CSR spending for the banks, BB officials told New Age on Sunday.
So, a number of banks spent significant amount of money on their own consideration, they said.
The BB data showed 35 out of 47 banks raised their CSR expenditure in last year while 12 banks decreased such spending in the period.
The 12 banks which decreased CSR expenditure are Rupali Bank, Jamuna Bank, Pubali Bank, Southeast Bank, Dhaka Bank, United Commercial Bank, Islami Bank Bangladesh, Standard Chartered Bank, Commercial Bank of Ceylon, Bank Al-Falah, National Bank of Pakistan and State Bank of India.
The top 10 banks which spent for the CSR programme in 2012 are Dutch-Bangla Bank (Tk 52.76 crore), EXIM Bank (Tk 39.90 crore), Islami Bank Bangladesh (Tk 30.91 crore), Prime Bank (Tk 29.56 crore), Janata Bank (Tk 13.75 crore), Trust Bank (Tk 13.02 crore) Agrani Bank (Tk 10.41 crore), Bank Asia (Tk 9.58 crore), First Security Islami Bank (Tk 9.04 crore) and Mercantile Bank (Tk 8.59 crore).
A BB official said the central bank would formulate the CSR policy within this year after which the banks would have to prepare their own policy in this connection.
As part of the move, the BB has already launched a new wing named green banking and CSR department, he said.
After formulating the CSR policy, the BB will set annual spending target for the CSR programme of the banks, he said.
Besides, the BB will set the sector-wise spending target under the CSR programme of the banks, he said.
In 2012, the banks spent the largest portion of the CSR programme fund in the education sector which amounted to Tk 98.36 crore, or 32.29 per cent of the total spent amount of Tk 304.66 crore.
The BB data, however, showed that the CSR expenditure in the health sector decreased to 14.29 per cent in 2012 from that of 23.78 per cent in 2011.
The banks collectively spent Tk 43.54 crore in the health sector in last year against Tk 52.04 crore in 2011.
The banks spent the second largest portion of the CSR programme fund in humanitarian and disaster relief which amounted to Tk 78.83 crore, or 25.88 per cent of the total amount spent.
The banks spent a small portion of their CSR budget in the environment sector although the sector has recently emerged as an important sector as Bangladesh is now considered one of the vulnerable countries due to climate change.
The banks spent Tk 14.02 crore in the environment sector, or 4.60 per cent of the total amount spent as the CSR expenditure.
The other key sectors which received CSR funds were sports and art and culture.
-With New Age input
