CSR spending surges in 2025, but climate funding remains low

CSR spending by scheduled banks in Bangladesh recorded a strong upward shift in the second half of 2025, with private commercial lenders once again emerging as the main driving force behind the growth.

Latest figures from Bangladesh Bank (BB) show that total CSR expenditure stood at about Tk1.98 billion during July–December 2025. This reflects a 34.42% increase from Tk1.47 billion spent in the January–June period. In monetary terms, the sector saw an additional Tk506.6 million directed towards social initiatives within six months.

Education continued to dominate the CSR landscape, maintaining its position as the most prioritized sector. Banks channelled Tk642.4 million into education-related activities, which made up 32.47% of the total CSR allocation. The spending largely supported scholarships for students, supply of educational resources, and improvements in academic facilities.

Healthcare followed closely as the second major area of focus. A total of Tk575.2 million was spent in this sector, accounting for 29.07% of overall CSR expenditure. These funds were used for a range of health support activities, including medical assistance programmes and welfare-oriented healthcare services.

By contrast, environmental and climate-related initiatives received comparatively limited attention. This segment accounted for Tk292.9 million, or 14.81% of total CSR spending, making it the smallest share among the key sectors tracked during the period.

The rest of the CSR budget, Tk468.0 million, was distributed across various other areas, collectively representing 23.65% of total expenditure.

Private commercial banks continued to shape the CSR landscape in a dominant way. They contributed 79.16% of total spending. Out of 43 private commercial banks, 36 participated actively in CSR programmes, together spending Tk1.57 billion over the six-month period.

Foreign banks also maintained a steady level of engagement. Seven out of nine foreign commercial banks were active in CSR initiatives, jointly contributing Tk330.2 million, which equals 16.69% of the total.

On the other hand, participation from state-owned banks remained modest. Only three out of six state-owned commercial banks undertook CSR activities during the period, spending Tk80.9 million in total, which accounts for 4.09% of overall CSR expenditure. Specialized banks had an even smaller footprint, with negligible involvement reported.

In the Islamic banking segment, seven out of 10 Shariah-based banks engaged in CSR activities, using a combination of previous year's post-tax profits and other internal resources. Their combined spending reached Tk296.5 million, contributing 14.99% to total CSR expenditure across the sector.

Bank representatives attribute the overall 34% rise in CSR spending to improved profitability and a stronger institutional focus on social impact initiatives. They point out that education and healthcare continue to attract the highest allocations due to their direct and visible benefits for communities.

Private banks, in particular, are increasingly using CSR as a way to reinforce public confidence and strengthen their institutional reputation.

However, industry observers note that spending on environment and climate resilience remains comparatively low. Looking ahead, there is an expectation that banks will gradually move towards more structured CSR strategies, with greater emphasis on sustainability and long-term developmental impact rather than short-term outreach.