Abu Sazzad :
The central bank is going to arrange a series of meetings with the banks from this month with a view to verifying the authenticity of the disbursement process of their Corporate Social Responsibility (CSR) fund.
Bangladesh bank suspects that the commercial banks disbursed the CSR fund violating rules and regulations as the central bank on a number of occasions unearthed corruption in disbursement process.
CSR fund disbursement by the scheduled banks grew by 14.17 per cent to Tk 510.55 crore in 2014 over the previous year despite a fall in CSR spending by the state-owned commercial banks because of a government embargo.
According to the latest Bangladesh Bank data, banks disbursed Tk 447.15 crore in CSR fund in 2013. They distributed Tk 304.67 crore in 2012 and Tk 218.83 crore in 2011.
The central bank earlier unearthed that some state-owned and private commercial banks had committed financial crimes in disbursing their CSR fund.
In view of this, the government suspended the CSR programmes of four state-owned banks on August 28, 2014. The four banks are Janata, Agrani, Rupali and Bangladesh Development Bank. The embargo was lifted recently.
Because of the embargo, the CSR spending by Janata Bank declined to 13.84 crore in 2014 from Tk 42.68 crore in 2013, Sonali bank to Tk 4.52 crore from Tk 4.91 crore, Rupali to Tk 2.33 crore from Tk 5.24 crore, while Agrani did not disburse any amount in 2014 against Tk 0.72 crore in 2013.
The BB also revealed that the board of directors of a private bank disbursed Tk two crore in CSR fund in favour of its former chairman, violating rules and regulations.
The bank, however, was forced to recover the fund from the ex-chairman on account of the central bank’s initiative.
The BB officials said that despite decline in CSR spending, the overall disbursement of the fund rose in the sector as a number of banks disbursed high percentage of their net profits as CSR fund.
They said that the core objective of the CSR programmes of the banks was not achieved due to the corruption in the process.
The BB earlier considered that a bank would be allowed to disburse maximum 2.50 per cent of its net profit as CSR fund in a year. The central bank, however, did not monitor the policy.
The BB data showed Dutch-Bangla Bank disbursed the highest amount as CSR fund for Tk 181.36 crore in 2014. The bank had distributed Tk 78.54 crore 2013.
The CSR fund of Islami Bank Bangladesh increased to Tk 52.45 crore in 2014 from Tk 47.64 crore in 2013, that of Prime Bank to Tk 38.20 crore from Tk 25.72 crore, that of EXIM Bank to Tk 32.46 crore from Tk 39.26 crore and that of HSBC to Tk 16 crore from Tk 13.38 crore.
The BB data showed that some banks disbursed high percentage of their net profits as CSR fund in last year.
Dutch-Bangla Bank disbursed 82.38 per cent of its net profit as CSR fund in 2014 while Rajshahi Krishi Unnayan Bank 60.27 per cent, First Security Islami Bank 17.61 per cent, Prime Bank 15.53 per cent, South Bangla Agriculture and Commerce Bank 14.31 per cent and Exim Bank 12.04 per cent.
A BB official said, high rates of disbursement are questionable as to how the banks disbursed the huge amount as CSR fund against their net profits.
The central bank is going to arrange a series of meetings with the banks from this month with a view to verifying the authenticity of the disbursement process of their Corporate Social Responsibility (CSR) fund.
Bangladesh bank suspects that the commercial banks disbursed the CSR fund violating rules and regulations as the central bank on a number of occasions unearthed corruption in disbursement process.
CSR fund disbursement by the scheduled banks grew by 14.17 per cent to Tk 510.55 crore in 2014 over the previous year despite a fall in CSR spending by the state-owned commercial banks because of a government embargo.
According to the latest Bangladesh Bank data, banks disbursed Tk 447.15 crore in CSR fund in 2013. They distributed Tk 304.67 crore in 2012 and Tk 218.83 crore in 2011.
The central bank earlier unearthed that some state-owned and private commercial banks had committed financial crimes in disbursing their CSR fund.
In view of this, the government suspended the CSR programmes of four state-owned banks on August 28, 2014. The four banks are Janata, Agrani, Rupali and Bangladesh Development Bank. The embargo was lifted recently.
Because of the embargo, the CSR spending by Janata Bank declined to 13.84 crore in 2014 from Tk 42.68 crore in 2013, Sonali bank to Tk 4.52 crore from Tk 4.91 crore, Rupali to Tk 2.33 crore from Tk 5.24 crore, while Agrani did not disburse any amount in 2014 against Tk 0.72 crore in 2013.
The BB also revealed that the board of directors of a private bank disbursed Tk two crore in CSR fund in favour of its former chairman, violating rules and regulations.
The bank, however, was forced to recover the fund from the ex-chairman on account of the central bank’s initiative.
The BB officials said that despite decline in CSR spending, the overall disbursement of the fund rose in the sector as a number of banks disbursed high percentage of their net profits as CSR fund.
They said that the core objective of the CSR programmes of the banks was not achieved due to the corruption in the process.
The BB earlier considered that a bank would be allowed to disburse maximum 2.50 per cent of its net profit as CSR fund in a year. The central bank, however, did not monitor the policy.
The BB data showed Dutch-Bangla Bank disbursed the highest amount as CSR fund for Tk 181.36 crore in 2014. The bank had distributed Tk 78.54 crore 2013.
The CSR fund of Islami Bank Bangladesh increased to Tk 52.45 crore in 2014 from Tk 47.64 crore in 2013, that of Prime Bank to Tk 38.20 crore from Tk 25.72 crore, that of EXIM Bank to Tk 32.46 crore from Tk 39.26 crore and that of HSBC to Tk 16 crore from Tk 13.38 crore.
The BB data showed that some banks disbursed high percentage of their net profits as CSR fund in last year.
Dutch-Bangla Bank disbursed 82.38 per cent of its net profit as CSR fund in 2014 while Rajshahi Krishi Unnayan Bank 60.27 per cent, First Security Islami Bank 17.61 per cent, Prime Bank 15.53 per cent, South Bangla Agriculture and Commerce Bank 14.31 per cent and Exim Bank 12.04 per cent.
A BB official said, high rates of disbursement are questionable as to how the banks disbursed the huge amount as CSR fund against their net profits.
