Reduced Corporate Social Responsibility Expenditure by Banks Amounting to Tk159 crore in the Initial Half of 2025
In a recent report published by the Central Bank of Bangladesh, it has been revealed that the spending on Corporate Social Responsibility (CSR) activities by banks in the country has seen a significant drop in the first half of 2025.
According to the report, banks spent Tk150 crore on CSR activities during this period, a decrease from Tk309 crore in the first six months of 2024. This represents a decline of Tk159 crore in CSR spending compared to the same period last year.
The report further states that the decrease in spending was observed across various sectors, including education, health, environment and climate, and other areas. Specifically, allocations for education dropped to Tk34 crore, for health to Tk28 crore, for environment and climate to Tk5 crore, and for other categories to Tk82 crore.
The senior official of Bangladesh Bank cited the decline in banks' net profits as one of the main reasons for the fall in CSR spending. Bankers attribute this decline in net profits to the overall state of the banking sector. In 2024, 16 banks reported no net profit, preventing them from allocating funds for CSR.
Interestingly, the report also notes that 12 out of 61 banks in the country did not spend any money on CSR during the first half of 2025.
As per Bangladesh Bank regulations, banks and financial institutions can allocate up to 1% of their net profits to CSR. Banks have set a target of Tk538 crore in CSR spending for 2025, equivalent to 3.14% of their net profits in 2024.
It is worth noting that in the past, banks were required to make significant contributions to funds such as the Prime Minister's Relief Fund and education-based funds. However, these distributions have decreased significantly. The decline in CSR spending is partly due to this decrease in mandatory contributions.
The exact reasons for the decline in CSR spending by the 61 banks in Bangladesh in the first half of 2025 are not explicitly detailed in the provided search results, so specific reasons cannot be confirmed from the data available.
Despite the decline in CSR spending, it is important to remember that these activities play a crucial role in improving the social and environmental conditions of the communities in which banks operate. Banks are encouraged to continue their efforts in this area and strive to meet their CSR targets for the year.
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