Banks Pressed for Police School Funds

The Bangladesh Association of Banks (BAB) has asked 20 commercial banks to contribute Tk50 lakh each from their corporate social responsibility (CSR) allocations to finance the construction of a school for police families in Dhaka, a move that has reignited debate over the practice of so-called “directed CSR” and the appropriate priorities for such funds.

The request follows a formal appeal from the Dhaka Metropolitan Police (DMP) headquarters, which is seeking financial support to build an eight-storey educational institution within the Demra Police Lines. According to the proposal, the total estimated cost of the project—including furniture and educational equipment—stands at Tk10 crore. The DMP has stated that no government funding has been earmarked for the initiative and that self-financing is not feasible, making external support essential if the project is to proceed swiftly.

In response, the BAB wrote to 20 selected banks on 1 February, urging them to channel CSR resources towards the project. Bank officials at around half of the institutions contacted confirmed receipt of the letters, and copies of the correspondence have been reviewed by this newspaper. Although the identities of all 20 banks have not been publicly disclosed, a senior BAB official indicated that financially stronger institutions were approached.

The proposed school is intended primarily for the children of police personnel, though it is also expected to serve residents of the surrounding community. It forms part of a broader expansion of facilities at the DMP’s eastern regional police lines in Demra, where a 20-storey residential complex housing around 300 police families has recently been completed on a 36.66-acre site.

Despite the project’s stated social value, the funding approach has unsettled many within the banking sector. Several managing directors privately expressed concern that requests routed through industry bodies can amount to implicit pressure, blurring the line between voluntary CSR and obligation. Mashrur Arefin, managing director and chief executive of City Bank and chairman of the Association of Bankers Bangladesh, warned that such practices carry risks. He noted that in previous years, bank executives had faced scrutiny from the Anti-Corruption Commission over contributions made under similar circumstances, arguing that “directed CSR” should be avoided altogether.

Regulators have also emphasised that CSR spending must adhere to established priorities. Bangladesh Bank guidelines stress that CSR should primarily benefit the poorest and most marginalised segments of society, particularly in education, healthcare and income-generating activities. Central bank spokesperson Arief Hossain Khan underscored that CSR funds are generally intended for individuals or institutions lacking the capacity to finance essential services on their own.

Economists have echoed these concerns. Ashikur Rahman, principal economist at the Policy Research Institute, suggested that CSR resources could have a greater impact if channelled into under-resourced areas such as healthcare, where targeted support could directly benefit vulnerable patients.

Indicative CSR Allocation Guidelines for Banks

As CSR continues to be framed as a key instrument for advancing sustainable development, the Demra school proposal has become a test case for how voluntary, transparent and needs-based such spending should remain in practice.