Kathmandu, Aug 3
Banks and Financial Institutions (BFIs) in Nepal
have mobilised more resources to the Corporate Social Responsibility (CSR) than
the limit set by the Nepal Rastra Bank.
A recent study by the NRB has found that the BFIs
mobilised about 1.58 per cent of the net profit in the Fiscal Year 2019/20 for
the CSR activities and programmes while the central bank’s provision is 1 per
cent of the profit. They have deposited the money in their CSR Fund.
Class ‘A’ commercial banks have deposited 1.54 per
cent of their profits to the fund, Class ‘B’ development banks 1.55 per cent
and Class ‘C’ finance companies 1.66 per cent while Class ‘D’ microfinance
institutions have separated 2.01 per cent of their profits for the CSR.
The central bank has conducted an online survey on
‘CSR in Nepalese banking industry’ from November 5 to December11, 2020 with the objective of finding
the reality of CSR exercise and status of the implementation of NRB’s
directives.
The study found that the BFIs participating in the
survey said that they conducted CSR with the purpose of image building of the
respective company. About 85 per cent of the companies have their CSR policy
and 51 per cent formulate an annual plan for the same.
However, the CSR expenditures do not have the
provincial balance, more than two-thirds of the fund is utilised in Bagmati
province.
Four years ago, only 35 per cent commercial banks
have mentioned the sectorial expenditures of the CSR in their annual reports
while the number increased to 38 per cent last year. Only 30.08 per cent BFIs
have mentioned the province-wise expenditures.
The central bank said that clear guideline and
directive was needed to make the CSR expenditures more balanced and transparent.
Published in The Rising Nepal daily on 4 August 2021.
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