Banks’ CSR Spending Falls by Nearly Tk 790 Million in Six Months

PNN News Desk | Dhaka

Spending by banks in Bangladesh on corporate social responsibility (CSR) has declined. During the first six months of 2026, from January to June, banks spent Tk 1.1904 billion in this sector. In the preceding six months, from July to December 2025, the amount stood at Tk 1.9785 billion. This means banks’ CSR expenditure fell by approximately Tk 788.1 million over the six-month period.

The figures were disclosed in a review report on CSR activities for January–June 2026 published by Bangladesh Bank’s Sustainable Finance Department. The report was prepared by analysing CSR expenditure data from 61 scheduled banks operating in the country.

According to the report, the largest share of banks’ CSR spending during the first six months of this year went to the “other” category. Expenditure in this category amounted to Tk 485.3 million, accounting for 40.77 percent of total spending.

The health and education sectors ranked next. Banks spent Tk 346.6 million on healthcare, equivalent to 29.11 percent of total CSR expenditure. Spending on education amounted to Tk 241.3 million, representing 20.27 percent of the total.

A further Tk 117.2 million was spent on environmental conservation and activities aimed at addressing and adapting to the effects of climate change. This accounted for 9.84 percent of total CSR expenditure.

Within the “other” category, disaster management received the largest allocation. Banks contributed Tk 343.4 million to this sub-sector, equivalent to 28.85 percent of total CSR expenditure. Activities supported by this funding included donations to the Prime Minister’s Relief Fund and the distribution of blankets among poor and cold-affected people in colder regions.

In addition, banks spent Tk 58.3 million on other sub-sectors, Tk 44.6 million on sports and culture, Tk 20.2 million on infrastructure development and Tk 18.8 million on income-generating activities.

In the health sector, banks’ funds were primarily used to provide medical assistance to financially disadvantaged, underserved and disabled patients, deliver free healthcare services and distribute medical supplies. In addition to direct financial assistance for people suffering from various complex and chronic diseases, the funds were also used for the construction and operation of hospitals, clinics and diagnostic centres, as well as the purchase of medical equipment.

Banks’ expenditure on education declined significantly during the first six months of this year compared with the preceding six-month period. Spending in this sector stood at Tk 444.7 million from July to December 2025. It fell to Tk 241.3 million between January and June 2026, representing a decline of 45.74 percent.

The funds were used to provide scholarships to students, distribute educational materials and improve infrastructure at educational institutions.

Spending on environmental protection and climate change-related activities also declined. Banks spent Tk 292.9 million in this sector during the preceding six months. In the first half of 2026, the amount dropped to Tk 117.2 million. The report puts the decline in expenditure in this sector at 59.99 percent.

Activities supported under this category included tree planting, environmental research, the creation of alternative income opportunities for fishing communities, and initiatives to ensure access to safe drinking water and sanitation facilities for populations exposed to climate risks.

Private commercial banks accounted for the largest share of CSR expenditure by banking category. Of the 43 private commercial banks operating in Bangladesh, 33 spent Tk 1.037 billion on CSR activities during the first six months of this year. This represented 87.11 percent of total CSR expenditure across the banking sector.

Among the nine foreign commercial banks operating in the country, six spent Tk 129.1 million, accounting for 10.85 percent of the total. Of the six state-owned commercial banks, two spent Tk 23.1 million. Meanwhile, among the three specialised banks, one spent Tk 1.1 million on CSR activities.

The CSR expenditure of 10 Islamic Shariah-based banks amounted to Tk 183.6 million, representing approximately 15.38 percent of total spending across the banking sector. Of this amount, only Tk 500,000 came from their after-tax net profits earned in the previous year. The remaining Tk 183.1 million came from other sources. In other words, 99.74 percent of these banks’ CSR expenditure was financed from sources outside their net profits.

By contrast, a large portion of CSR expenditure by foreign banks came from their previous year’s net profits. According to the report, six foreign banks spent Tk 128.3 million on CSR activities during the first six months of this year using after-tax net profits earned in 2025. This represented 99.38 percent of their total CSR expenditure. Only Tk 800,000 came from other sources.

In addition to banks, Bangladesh Bank reviewed the CSR activities of 35 financial institutions operating in Bangladesh. Their total expenditure during January–June this year amounted to Tk 18.516 million.

Of this amount, Tk 7.749 million was spent on healthcare, accounting for 41.85 percent of the total. Education received Tk 5.65 million, or 30.51 percent. A further Tk 3.087 million was spent on environmental and climate-related activities, while Tk 2.03 million went to other sectors.

According to the report, healthcare and education remain important areas of social responsibility initiatives undertaken by banks and financial institutions. However, banks’ overall CSR expenditure during the first six months of this year declined significantly compared with the preceding six-month period.