Many BFIs not transparent in spending from CSR fund

Kathmandu / August 4: Most of the banks and financial institutions (BFIs) have been found concealing information related to the amount they spent on their corporate social responsibility (CSR).

According to a report unveiled by Nepal Rastra Bank (NRB), the BFIs have not been abiding by the central bank’s guideline that requires them to make public the details of the CSR in their annual financial report. Mostly, the BFIs have been using the CSR as a tool in building their images to promote their businesses.

Likewise, the BFIs are found spending the CSR amount mainly in the urban areas, in contrast to the central bank’s target to promote it in rural areas. The report shows that around two-thirds of the amount deposited in the CSR fund has been spent in Bagmati Province alone.

NRB has asked the BFIs to maintain at least one percent of their net profit in the CSR fund. On average, the BFIs have been depositing an average of 1.58 percent in the fund. Of the four categories of BFIs, microfinance institutions that fall under category D, have maintained 2.01 percent, the largest of all.