Dhaka South City Corporation has asked nearly four dozen commercial banks and mobile financial service providers to contribute between Tk50 lakh and Tk3 crore each to finance a week-long celebration marking the capital’s 416th anniversary.
The request comes barely two weeks after the globally recognised Economist Intelligence Unit (EIU) ranked Dhaka as the world’s third least liveable city, ahead of only the war-ravaged capitals Tripoli and Damascus.
Bank executives and urban planners have criticised the move as both legally questionable and disconnected from the city’s pressing needs.
They argue that, with recurring waterlogging, deteriorating infrastructure and chronic civic failures repeatedly disrupting daily life, scarce CSR funds should be directed towards addressing urban challenges rather than sponsoring festivities.
Against this backdrop, Dhaka South officials are urging financial institutions to bankroll “Dhaka Day 2026” through their CSR budgets, a proposal that has drawn sharp criticism from bankers, many of whom said the sector is already under significant financial strain.
The city corporation sent letters dated 13 July to commercial banks and MFS providers last week, seeking sponsorship for the event. A copy of one such letter, signed by Dhaka South Administrator Md Abdus Salam, has been obtained by The Business Standard.
Although the official letter does not specify any amount, funding expectations were outlined during a meeting chaired by the administrator with representatives of commercial banks. The meeting was held last week after the letters were dispatched, according to bank highups.
During the presentation, banks and MFS providers were asked to contribute between Tk50 lakh and Tk3 crore each.
Expressing strong objections over the proposal, banking high ups told TBS that the financial position of many banks has weakened considerably. At the end of 2025, most commercial banks reported lower net profits, while some incurred losses.
Available data show the combined net profit of 31 listed banks fell by 31% to Tk1,667 crore at the end of 2025, from Tk4,539 crore a year earlier.
What the Dhaka South’s letter says
The city corporation said it planned to celebrate the capital’s 416th anniversary through the seven-day “Dhaka Day 2026: In the Heart of Dhaka” festival from 1 August under the slogan, “Amar Shohor, Amar Daitto: Ami Bodlai, Dhaka Bodlabe” – “My City, My Responsibility: If I Change, Dhaka Will Change.”
According to the letter, the programme will feature a colourful procession, a traditional fair, a marathon, cycling events, concerts, exhibitions and various social and cultural programmes aimed at showcasing Dhaka’s civic heritage on the global stage.
The letter states, “Your esteemed institution is widely recognised for its corporate social responsibility (CSR) and public welfare initiatives. We believe your generous financial partnership will greatly contribute to the success of this celebration.”
Speaking to TBS on the matter, Abdus Salam said, “Dhaka is a historic city, but its history has never received the attention it deserves. Through this celebration, we will highlight Dhaka’s past, history and culture, which will make the city’s residents proud,” he said.
Responding to concerns raised by banks, he said, “We are aware that banks have certain limitations when it comes to sponsorship. Let us see what level of funding we receive from them.”
Bankers express concern
Meanwhile, managing directors, deputy managing directors and other top officials from around 20 commercial banks, speaking on condition of anonymity, shared their concerns with The Business Standard.
They said seeking sponsorship worth crores of taka for a city corporation festival would place an additional burden on banks. They also argued that Bangladesh Bank’s CSR guidelines do not permit banks to finance such festivals or fairs through CSR funds, calling for an end to the practice of funding public celebrations through bank sponsorship.
One managing director said, “Bank deposits belong to depositors and shareholders. We cannot simply hand over that money because an administrator wants us to. There are clear guidelines requiring CSR funds to be used for public welfare. There is no legal provision for spending those funds on a seven-day fair or concert. We will not provide funding.”
Another managing director said, “We provide CSR funds only for visible public welfare activities. In a poor country like ours, there are many more appropriate uses for CSR funds, such as education scholarships or healthcare.”
Another questioned the city’s priorities, saying, “When even moderate rainfall leaves most roads in Dhaka South flooded and inadequate drainage causes severe public suffering, is it reasonable to spend millions of taka on a week-long festival? If the Dhaka South City Corporation wants to organise such an event, it should finance it from its own funds rather than putting pressure on banks.”
A senior executive at another commercial bank confirmed that Dhaka South had been calling to seek sponsorship for the event.
“Why is it so important to hold such a celebration at this moment? The economy is already in a weak state. Besides, most banks failed to make a profit last year. Whether the money comes from sponsorship or CSR funds, it ultimately comes from the bank. Depositors’ money should not be used to finance festivals,” the official said.
Urban planners raise ethical concerns
Urban planner Professor Dr Adil Mohammed Khan, executive director of the Institute for Planning and Development (IPD), said improving drainage and water discharge systems in southern Dhaka should be the city’s immediate priority.
“Dhaka South City Corporation still has a great deal of work to do to improve the city. Roads in southern Dhaka go under water whenever it rains,” he said.
Questioning the funding request, he added, “There is an ethical question over whether the city corporation should seek money from banks in this way to organise such an event. I do not believe there is any ethical basis for it. Seeking money in this manner amounts to extortion.”
“We saw similar practices during the Awami League government’s tenure. Banks and various organisations were asked to provide sponsorship for different events, which effectively amounted to collecting money in the name of sponsorship,” he said.
“Banks conduct business with depositors’ money, so it is not appropriate to ask them to finance this kind of event. Moreover, when money is spent on such programmes, proper accounting is often lacking,” Adil added.
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