Banks must give Tk 116 crore in CSR to pandemic-hit people
Banks will have to allocate around Tk 116 crore to carry out corporate social responsibility (CSR) programmes in the form of providing essential goods and medical equipment to the underprivileged affected by the coronavirus pandemic.
They have to set aside one per cent of net profits earned this year to cater supports to people in the categories of jeopardised, unemployed poor, rootless and despaired persons, according to a central bank notice issued yesterday.
The one per cent net profit of banks stands at Tk 116 crore, given the overall net earnings by them this year, said a Bangladesh Bank (BB) official.
This fund has to be allocated in addition to the lenders' existing CSR budget for this year.
They will be allowed to adjust the one per cent additional fund in the next three years between 2022 and 2024 by way of cutting down their allocation for CSR programmes.
Banks will disburse this year's special fund through district commissioners (DC), non-government organisations (NGOs) and microfinance institutions (MFIs).
The DC offices, NGOs and MFIs will have to open accounts with the respective banks, which will disburse the funds through them.
A bank will have to disburse 50 per cent of the allocated fund in city corporation areas and the rest must be distributed for the people living outside of the cities.
Banks will have to give emphasis on providing essential food products and safety equipment to protect the poor from the virus and provide financial support for treatments.
The Association of Bankers, Bangladesh, an organisation of the top executives of banks, will monitor the special CSR activities.
Banks must complete the CSR activities in the quickest possible time, after which they will have to submit statements to this end to the central bank.