July 17, 2025, 12:05 pm


Special Correspondent

Published:
2025-07-17 05:46:21 BdST

Sustainable Finance Report 202410 banks, 2 NBFIs in BB's latest Rating list


Ten private commercial banks and two financial institutions in the country have been recognized as sustainable financial institutions.

The list was finalized considering the institutions' environmentally friendly and socially responsible banking activities.

This information has been revealed in the 2024 Sustainable Finance Report published by Bangladesh Bank.

This year's top banks include BRAC Bank, City Bank, Dutch-Bangla Bank, Eastern Bank, Jamuna Bank, Mutual Trust Bank, NCC Bank, Prime Bank, Pubali Bank and Shahjalal Islami Bank.

Six of these banks—BRAC Bank, City Bank, Eastern Bank, Jamuna Bank, Mutual Trust Bank, and Prime Bank—were also on the list last year.

On the other hand, Exim Bank, Trust Bank, United Commercial Bank (UCB) and Uttara Bank, which were on last year's list, have been left out this time.

Among financial institutions, IDLC Finance and IPDC Finance have maintained their positions in the sustainability rankings for the second consecutive year.

According to experts, the Sustainable Finance Report is not just a ranking, it is a message that the banking sector is now being evaluated not only in terms of profit, but also from the perspective of fulfilling social and environmental responsibilities.

Banks that are doing well in risk management, capital conservation, and financial inclusion of rural-underserved populations will be ahead in this index—it will serve as a guide for the future of banking.

Consistently good rankings in the Sustainability Index mean that the institution has strong foundations, clear responsibilities and is committed to people-based economic growth. Therefore, banks that are ahead in this index will not only increase customer confidence, but also become a benchmark for other institutions.

Bangladesh Bank said that the activities of banks and financial institutions are evaluated on five indicators: Sustainable Finance Index, Corporate Social Responsibility (CSR), Financing Green Projects, Core Banking Sustainability Index and Banking Services Coverage. Of these, Core Banking Sustainability and Banking Services Coverage indices together carry about 60 percent of the total score.

Experts said that banks with good risk management, adequate capital and low net default rate score higher. The core banking index takes into account the Tier-1 capital ratio, risk-based asset ratio, provision maintenance, CMSME loan share and exposure to large loan portfolio.

On the other hand, banking services coverage includes the branch network, number of customer deposit and loan accounts, number of agent banking outlets, etc.

It is worth noting that Bangladesh Bank launched this rating system in 2020, so that financial institutions take environmental, social and governance (ESG) issues seriously into consideration in their operations.

Analysts believe that this initiative is developing a sustainable and responsible banking culture.

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