Staff Correspondent

Bangladesh Bank has named eight private commercial banks and two financial institutions as top performers in sustainable finance for 2024 recognising their commitment to environmentally responsible financing, sound risk management, and sustainable banking practices.

According to officials at the central bank, the recognition comes as part of its annual Sustainable Finance Report which evaluates banks and financial institutions on a range of environmental, social, and governance (ESG) criteria.

The eight banks featured in the 2024 list are BRAC Bank, City Bank, Dutch-Bangla Bank, Eastern Bank, Jamuna Bank, Mutual Trust Bank, NCC Bank, Prime Bank, Pubali Bank, and Shahjalal Islami Bank.

Among these, BRAC Bank, City Bank, Eastern Bank, Jamuna Bank, Mutual Trust Bank, and Prime Bank have successfully retained their positions from the previous year.

However, Exim Bank, Trust Bank, UCB, and Uttara Bank, which were on last year's list, are not included in the current ranking.

Besides, IDLC Finance and IPDC Finance have secured their spots on the list of financial institutions for the second consecutive time.

Bangladesh Bank's evaluation is based on five key indicators: the ‘Sustainable Finance Index,’Corporate Social Responsibility (CSR) activities, green project financing, the ‘Core Banking Sustainability Index,’ and Banking Services Coverage. 

The combined weight of the Core Banking Sustainability and Banking Services Coverage indices accounts for approximately 60 percent of the total score.

Other crucial factors considered during the assessment include the net non-performing loan ratio, Tier-1 capital ratio, risk-weighted assets, provision maintenance, loan disbursement to CMSME sectors, large loan exposure, number of branches, agent banking outlets, and account numbers.

Bangladesh Bank first introduced its Sustainability Rating System in 2020.