Islamic banks in Bangladesh experienced a significant 39.53% decline in Corporate Social Responsibility (CSR) spending in Q4 2024, allocating Tk 0.78 billion compared to Tk 1.29 billion in Q4 2023. However, spending rose from Tk 0.58 billion in Q3 2024. CSR funds originate from zakat, compensation charges, and other Shariah-compliant sources and are directed toward education, health, and charitable initiatives. In Q1 and Q2 of 2024, CSR expenditures stood at Tk 0.85 billion and Tk 0.80 billion, respectively. Islamic banks account for over 25% of total deposits and 28% of investments in the banking sector. Stakeholders and the central bank emphasize the need for stronger CSR commitments, particularly in poverty alleviation, disaster management, education, and healthcare. To align financial activities with social welfare objectives, Islamic banks are urged to expand their philanthropic efforts and support vulnerable populations to ensure sustainable socio-economic development.
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