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Staff Correspondent
Contributions of the country’s commercial banks in corporate social responsibility (CSR) activities have substantially increased this year.
By June last, the commercial banks spent a handsome amount of Tk 1,049 crore which was merely Tk 55 crore in 2009.
Fazle Kabir, Governor of Bangladesh Bank, praised the increasing participation of the banks in CSR initiatives and suggested for further enhancement of these programmes in order to reach their benefits to the poorer segment of society. The central bank chief made this remark while addressing a stipend distribution ceremony of Al-Arafah Islami Bank Limited (AIBL), as part of the bank’s CSR programmes, at the Officers Club in the capital.
He also suggested the authorities concerned of the commercial banks to strengthen monitoring on whether the money lent by the banks is utilised properly after disbursement.
He said there are widespread allegations that after receiving money from banks the borrowers use it somewhere else, and ultimately they turn into loan defaulters.

The central bank data suggest that the amount of default loan stood at Tk 88,589 crore 37 lakh in March this year.

The governor praised the role of AIBL for its contribution in distributing farm loans through agent banking and bringing down the NPL ratio at 5 percent which is more than 7 percent in foreign commercial banks.

Fazle Kabir however expressed dissatisfaction over the ratio of credit and deposit, because the ratio is more than 14 percent and deposit is 13 percent.

“For the development of the country we primarily need development of human resources, the distribution of education stipend for students will contribute significantly in human resource development,” the governor added.

AIBL Chairman Abdus Samad Labu, Managing Director Farman R Chowdhury and other senior officers concerned were present on the occasion.

While addressing, Abdus Samad Labu said the bank is operating following the guidelines of Islami Shariah, and the bank has a strong Shariah Board and it has never compromised with honesty and ethics.

Managing Director Farman R Chowdhury said the AIBL will distribute Tk 4 crore education stipend to 800 students every year, but this year the bank is providing stipend to 200 SSC and HSC passed students.

Directors of the bank and guardians of 200 students were also present in the stipend distribution ceremony.