Expenditure of new banks for CSR abnormally high: BIBM

Dhaka,  Mon,  25 September 2017
Published : 10 Aug 2017, 20:04:25 | Updated : 10 Aug 2017, 20:07:02

Expenditure of new banks for CSR abnormally high: BIBM

The expenditure of new commercial banks for their Corporate Social Responsibility (CSR) activities is abnormally high and one of these banks spent up to 205 per cent of its net profits, according to a research report of Bangladesh Institute of Bank Management (BIBM), reports BSS.

As per the Bangladesh Bank's (BB) guideline, banks must spend 10 per cent of their net profits for CSR activities. But NRB Global Bank spent 205 per cent of its net profits in 2016 which is very much abnormal, said BIBM in its research report. 

The report was released in a workshop titled 'An Evaluation of the Performance of New Commercial Banks' organised by BIBM. BB's Deputy Governor Shitangshu Kumar Sur Chowdhury attended the programme as the chief guest while former governor of BB Khondkar Ibrahim Khaled and director general of BIBM Dr Toufic Ahmad Choudhury, among others, spoke at the programme. 

BIBM's associate professor Mohammed Sohail Mustafa presented the research report at the workshop. 

According to the report, Union Bank spent 99 per cent, Midland Bank 92 per cent and NRB Global Bank 35 per cent of their profits for CSR programmes in 2015. In 2014, NRB Global spent 49 per cent, NRB Commercial Bank 37 per cent and Union Bank 15 per cent in 2014.

Shitangshu Kumar Sur Chowdhury in his speech said two or three of the new nine commercial banks are not in a good position but time has not come to say that the situation of these banks is very weak or good. Bangladesh Bank is taking necessary steps against these banks, he said, adding that these banks are now under close monitoring of the central bank. 

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