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 percent of its net profits, according to a research report of Bangladesh Institute of Bank Management (BIBM).
As per the Bangladesh Bank's (BB) guideline, banks must spend 10 percent of their net profits for CSR activities. But NRB Global Bank spent 205 percent 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' organized by BIBM. BB's Deputy Governor Shitangshu Kumar Sur Chowdhury attended the program 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 program.
BIBM's associate professor Mohammed Sohail Mustafa presented the research report at the workshop. According to the report, Union Bank spent 99 percent, Midland Bank 92 percent and NRB Global Bank 35 percent of their profits for CSR programs in 2015. In 2014, NRB Global spent 49 percent, NRB Commercial Bank 37 percent and Union Bank 15 percent 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. Khondkar Ibrahim Khaled said there is nothing to worry about these new banks because the rate of their default loans is less than on e percent.
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