Eleven Banks, Most NBFIs Forego CSR Spending in 2025

A Bangladesh Bank report released today (5 April) has revealed that eleven banks and a majority of non-bank financial institutions (NBFIs) in Bangladesh did not engage in any corporate social responsibility (CSR) spending in 2025, despite an overall rise in CSR expenditure by banks during the latter half of the year.

Out of the country’s 61 banks, 11 reported zero CSR expenditure for the year. Similarly, among the 35 NBFIs, 21 recorded no spending on CSR activities at all, highlighting significant gaps in participation across the financial sector.

Nevertheless, banks that remained active in CSR increased their overall contribution considerably in the second half of 2025. According to the report, total CSR expenditure by banks rose to Tk197.85 crore between July and December, up from Tk147.19 crore in the first half of the year — an increase of nearly 34%.

The data also indicates that CSR spending continues to be heavily concentrated among a small number of institutions. Standard Chartered Bank led the sector with a contribution of Tk27.71 crore, followed by BRAC Bank at Tk20.04 crore and EXIM Bank at Tk19.85 crore.

Private banks dominated the CSR landscape, contributing 79.16% of the total expenditure, whereas state-owned banks accounted for a mere 4.09%, underscoring a marked disparity between the two groups.

In terms of sectors, CSR spending largely followed traditional patterns. Education received the largest allocation, comprising 32.47% of total expenditure, while health-related initiatives accounted for 29.07%. Combined, these two sectors absorbed nearly 60% of the total CSR outlay. By contrast, environmental and climate-related spending remained limited, at 14.81%, falling short of the 20% allocation recommended by Bangladesh Bank.

Bangladesh Bank mandates that banks and financial institutions allocate up to 1% of their net profits to CSR. Of this, at least 30% must be directed towards education and another 30% towards health. A further 20% should target environmental protection and climate change mitigation, with the remaining 20% permitted for income generation, disaster management, infrastructure, sports, and cultural initiatives.

Major CSR Contributors in 2025

The report reflects that while overall CSR investment has grown, participation remains uneven, with a substantial portion of institutions failing to meet regulatory expectations. Analysts suggest that greater enforcement and incentives may be required to ensure more inclusive CSR engagement across the financial sector.