CSR expenditure as a strategic tool: implications for bank growth and eps in Bangladesh banking sector

Abstract

In Bangladesh, Corporate Social Responsibility (CSR) in the banking sector is guided by the Bangladesh Bank to promote social, financial, and environmental development. This study examines CSR expenditures by private commercial banks and their implications for overall financial performance, particularly Earnings per Share (EPS). Using secondary data from 33 private commercial banks covering the period 2015–2024, the research investigates the relationship between CSR spending, firm size, and EPS. Panel data regression techniques were employed, and the results indicate that CSR expenditure has a significant positive relationship with banks' financial performance. The findings also provide strategic insights into the role of CSR investment. Descriptive statistics and regression analyses reveal that CSR expenditures in education, healthcare, infrastructure development, and other social sectors have a statistically significant positive impact on EPS. The study concludes that CSR should be viewed not merely as an expense but as a strategic investment that enhances the long-term sustainability and financial performance of banks.