Reflecting the severe financial strain on the country’s banking industry, Corporate Social Responsibility (CSR) expenditure by commercial banks in Bangladesh plummeted by nearly 42% in 2025. According to the latest report from Bangladesh Bank released on Sunday, the total CSR outlay fell to Tk 345.05 crore, marking the lowest level of social spending by the sector in the last decade.
The decline follows a turbulent 2024, where 17 banks failed to record any net profit, and even performing institutions saw earnings fall short of expectations. The current spending level is approximately Tk 182 crore less than the previous decade-low recorded in 2015.
A Steep Downward Trend
The central bank’s data highlights a rapid contraction in social investment over the past two years:
-
2022: Tk 1,129 crore
-
2023: Tk 924.32 crore
-
2024: Tk 615.96 crore
-
2025: Tk 345.05 crore
In total, CSR spending has slashed by more than 45% (Tk 513 crore) since 2022, signaling a worrying trend for the country’s education and health sectors, which rely heavily on these funds.
Political Shifts and Transparency
Industry insiders suggest that the political upheaval of mid-2024, including the student-led mass uprising and the subsequent change in government, played a dual role in this decline.
Under the previous administration, banks often faced significant political pressure to donate to specific foundations, events, or regional projects that frequently fell outside the scope of genuine CSR. Bankers note that following the transition in August 2024, this external pressure has largely vanished, allowing banks to be more selective—and frugal—with their remaining funds.
Economists have welcomed this shift in autonomy but emphasize the need for transparency. “CSR funds should not be a tool for political appeasement,” noted one analyst. “However, the sharp drop also highlights the underlying fragility of our banks’ balance sheets.”
Misalignment with Central Bank Mandates
Bangladesh Bank guidelines stipulate that banks should allocate their CSR budget as follows:
-
30% to Education
-
30% to Health
-
20% to Environment and Climate Change
-
20% to Other Sectors
However, the 2025 data shows significant non-compliance. The “Other” category dominated spending at 36%, while environment and climate initiatives received only 10%.
Profitability and the “Zero-Spenders”
The report identified 11 banks that spent nothing on CSR during the period, many of which are currently struggling with losses, liquidity crises, and high non-performing loans (NPLs). Notable names include Janata Bank, Agrani Bank, BASIC Bank, and National Bank.
Interestingly, six banks—including AB Bank, First Security Islami Bank, and Social Islami Bank—continued to spend on CSR despite failing to turn a net profit, prioritizing their social obligations despite their precarious financial positions.
The Road Ahead
As the government moves to stabilize the sector through bank mergers and stricter oversight of Shariah-based and state-owned banks, experts believe CSR spending will only recover once the “hidden” losses and irregularities of the past decade are fully addressed and the sector returns to genuine profitability.
