The green banking activities of banks and FIs in June, 2014 quarter witnessed significant progress.
"The increasing trend of investment and expenditure in various green banking activities of banks and FIs shows optimistic potential of expansion of green banking activities in Bangladesh," the Quarterly Review Report on Green Banking Activities of Banks and Financial Institutions upto June, 2014 said.
Green Banking and CSR Department of Bangladesh Bank released the report Tuesday.
"BB anticipates the more rigorous and effective performance in mainstreaming green banking activities," the report commented.
According to the report, all 47 banks (scheduled before 2013) have their own Green Banking Policy Guidelines approved by their Board of Directors/Competent authority and have Green Banking Unit (GBU) for pursuing Green Banking activities. They also have their own Green Office Guide for conducting their in-house green activities.
Out of 9 new banks, 2 have formulated their own Green Banking Policy Guidelines and 2 have formed Green Banking Unit (GBU) till the reporting quarter. 4 new banks have prepared their own Green Office Guide.
Out of 31 FIs, 22 have formulated their own Green Banking Policy Guidelines approved by their Board of Directors and 23 FIs have formed Green Banking Unit (GBU) till the reporting quarter.
22 FIs have prepared own Green Office Guide for conducting their in-house green activities.
Out of Tk. 243,499.85 million for green banking activities, 47 banks (scheduled before 2013) have allocated Tk. 241,672.46 million for green finance, Tk. 1,124.58 million for climate risk fund and Tk. 702.81 million for Marketing Training and Capacity Building. This allocation has been made on annual basis.
A total of 38 banks have utilized Tk. 112,705.33 million in the reporting quarter for green banking activities.
Out of which, Tk. 112,570.85 million for green finance, Tk. 102.49 million for climate risk fund and Tk. 31.99 million have been utilized.
No new banks has allocated and utilized fund for green banking in the reporting quarter.
The quarterly shift from March 2014 to June 2014 evidences significant rise in respect of utilization of fund.
Out of Tk. 11,771.89 million for green banking activities, FIs have allocated Tk. 11,625.36 million for green finance, Tk. 129.71 million for climate risk fund and Tk. 16.82 million for Marketing Training and Capacity Building.
A total of 9 FIs have utilized Tk. 5,038.80 million in the reporting quarter for green banking activities. Out of which, Tk. 4,938.42 million for green finance, Tk. 100.00 million for climate risk fund and Tk. 0.38 million have been utilized.
A total of 45 banks (out of 47 banks scheduled before 2013) have conducted environmental risk rating in the reporting quarter. According to that, number of Projects applicable for Environmental Due Diligence (EDD) rating in this quarter is 11,349.
According to the report, a total of 41 banks (out of 47 banks scheduled before 2013) have exposure in green finance, either direct or indirect mode. Total amount invested as green finance has been Tk. 112,570.85 million as of June 2014.
A total of 46 banks (out of 47 banks scheduled before 2013) have at least one online branch and 30 banks have introduced internet banking facility up to June 2014. Progress has been observed in the expansion of online branches since the previous quarter. Moreover, internet banking and SMS/mobile banking facility have been increased notably over the preceding quarter.
A total of 38 (out of 47 banks scheduled before 2013) banks have arranged 166 training programmes concerning green banking where total number of participants was 9,738.32 banks and 6 FIs have initiated Green Marketing and 9 banks and 3 FIs have arranged Green Events in this quarter.
Upto June 2014, 39 banks and 8 FIs have pursued disclosure on green banking in their annual report, 36 banks and 8 FIs have put green banking disclosure in their website. 20 banks and 5 FIs have disclosed their green banking activities in the media and 4 banks and 1 FIs have prepared.
Commenting on the BB report, Md. Touhidul Alam Khan, Deputy Managing Director of Modhumoti Bank Limited said, commercial banks are now acting as an environmentally responsible bank under prudential guidelines of Bangladesh Bank.
"Banks hold a unique position in an economic system that can affect production, business and other economic activities through their financing activities," Md. Touhidul Alam Khan, the first and only Certified Sustainability Reporting Assurer (CSRA) in Bangladesh opined.
He said as per Green Banking Policy issued by Bangladesh Bank in February 2011, the banks are implementing the green banking activities under three phases along with preparation of Sustainability Report under globally accepted GRI (Global Reporting Initiative) method.
"It is matter of proud that other countries are now following Green Banking Model of Bangladesh," the Modhumoti Bank DMD said.
He also added, "As a new bank, Modhumoti Bank has already taken various green banking initiatives at first out of new nine banks by preparing Green Banking Policy, Green Office Guide, arranging workshop and establishment of separate Green Banking Unit. Besides, the Bank celebrated month-long green banking campaign in the month of June this year, which started by celebrating World Environment Day.
"Modhumoti Bank has already planned to invest under green finance this year in some innovative projects accommodating re-finance scheme of Bangladesh Bank," Mr Touhidul Alam Khan added.
source: The financial Express
