B Mirror Report: Bangladesh’s banking sector faced a challenging period in 2024, with 17 banks failing to make net profits due to mounting financial pressures. Even banks that remained profitable saw earnings fall short of expectations, leading to a sharp decline in corporate social responsibility (CSR) spending.

According to a Bangladesh Bank report released on Sunday (April 5), 61 commercial banks spent a total of Tk 345.05 crore on CSR in 2025 (January–December), down by Tk 270.91 crore, or nearly 42 percent, from the previous year.

This marks the lowest CSR expenditure in the past decade. The previous lowest was Tk 527.36 crore in 2015, making the latest figure about Tk 182 crore lower and indicating a continued downward trend.

CSR spending has steadily declined over recent years from Tk 1,129 crore in 2022 to Tk 924.32 crore in 2023, and Tk 615.96 crore in 2024. Over two years, expenditure has dropped by more than Tk 513 crore, or over 45 percent.

Industry insiders attribute the decline to political unrest and economic pressures in mid-2024, including mass protests and a subsequent change in government. At the same time, irregularities, loan scams, and allegations of money laundering in several banks exposed their true financial conditions. Rising non-performing loans further worsened the situation.

Several Shariah-based banks were particularly affected, with loan irregularities linked to major business groups becoming more visible. In response, the government has taken steps to merge weaker banks to restore stability.

Bankers say political changes also reduced pressure on banks to spend on CSR. Previously, banks often faced informal requests for donations across sectors such as education, healthcare, and events sometimes beyond genuine CSR purposes. Since the political transition in 2024, such pressure has eased, allowing banks to be more selective in CSR spending.

Economists stress the need for greater transparency and accountability in CSR activities, noting that political influence can divert funds from meaningful social impact.

Under Bangladesh Bank guidelines, banks are required to allocate portions of their net profits to CSR 30 percent each for education and healthcare, 20 percent for environment and climate, and the remaining 20 percent for other sectors. However, these guidelines are not being fully followed.

In 2025, banks allocated the highest share 36 percent to “other” sectors, 28.53 percent to education, a significant portion to healthcare, and only 10 percent to environment and climate.

The report also found that 11 banks made no CSR spending during the period, including Janata Bank, Agrani Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, National Bank, Global Islami Bank, Padma Bank, Union Bank, and National Bank of Pakistan.

Among the 17 loss-making banks in 2024 were Janata Bank, Agrani Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, AB Bank, Bangladesh Commerce Bank, First Security Islami Bank, ICB Islami Bank, IFIC Bank, National Bank, NRBC Bank, Global Islami Bank, Padma Bank, Social Islami Bank, Union Bank, and National Bank of Pakistan.

Despite incurring losses, six banks AB Bank, First Security Islami Bank, ICB Islami Bank, IFIC Bank, NRBC Bank, and Social Islami Bank continued to spend on CSR activities.