Banks, FIs urged to spend more on CSR

Bangladesh Bank governor Atiur Rahman on Saturday urged banks and financial institutions to spend more on corporate social responsibility activities.

‘If any bank is found to have done more CSR works, it would cast a positive impact on its rating,’ he said while addressing a function at city’s Diploma Engineers Institute at Kakrail in the city.

He said Bangladesh Bank was pledged-bound to establish itself as a ‘human central bank’. ‘We’re trying to move forward the country’s banking sector with a human face.’

The National Credit and Commerce Bank (NCC Bank) organised the function to provide scholarship to successful meritorious students. A total of 250 students obtained the NCC Bank scholarship under its CSR project.

The central bank governor said though the CSR was not mandatory for a bank, such activities of the banks were being scrutinised to determine their position as per ‘CAMEL rating’ in order to create a competition among banks.

He suggested banks to conduct CSR activities under a specific and well designed plan. Atiur said these CSR activities would yield a good result for them at the end.

Appreciating the NCC Bank for launching the scholarship programme for the meritorious students, Atiur said this would play a tremendous positive role in helping poor students pursue their higher education.

He pointed out that a major portion of brilliant students across the country are being deprived from pursuing higher education because of their poor economic condition.

The Central Bank introduced the CSR rating in 2008 in the country’s banking sector through issuing a circular to encourage the banks to contribute in different social activities.

The banks’ CSR spending increased to Tk 305 crore from Tk 41 crore in 2008.

News Source:-New Age Bangladesh

Dated:-3-Mar-2013