A Bangladesh Bank data released on Wednesday depicted the picture
Spending on corporate social responsibility (CSR) by the country’s scheduled banks soared year-on year by 47.22% to Tk408.58 crore in July-December period of last year, despite their high amount of non-performing loans.
A Bangladesh Bank (BB) data released on Wednesday depicted the picture.
As per the CSR expenditure guideline of the BB, banks can spend limitless amount of money on philanthropic purposes from their net profits.
However, banks cannot spend more than 30% of their CSR fund on education sector, 20% on healthcare sector, and highest 10% on climate risk or disaster management related schemes.
Of the CSR expenses, banks spent the highest Tk123.76 crore for disaster management, representing 30.30% of their total spending, says the BB data.
The second highest of Tk120.56 crore or 29.51% was spent on education sector.
Besides, banks spent Tk49.65crore for health sector, Tk22.70 crore for cultural sector, among others, according to the central bank data.
Talking to Dhaka Tribune, Pubali Bank Managing Director M. A. Halim Chowdhury said the banks had spent the CSR amount either through their own channels or through donations to the Prime Minister's Relief and Welfare Fund.
Banks get tax rebates for spending under CSR initiatives.
At the end of December last year, total defaulted loans in the banking sector hit Tk94,313crore, up 0.42% year-on-year, according to a BB data.