Lending: Banks give Rs140b in farm loans

Agriculture lending rises 12% compared to last year.

KARACHI: Disbursement of agricultural credit by banks increased 12% to Rs140.32 billion in the first half (July-December) of the current fiscal year compared to the corresponding period of previous year, according to figures released by the State Bank of Pakistan on Monday.

In July-December 2011, farmers had borrowed Rs125.21 billion from the banks.

Of the total lending to farmers, five major commercial banks – Allied Bank, Habib Bank, MCB Bank, National Bank and United Bank – enjoyed a dominating share at Rs76.04 billion in July-December 2012, up 7.76% compared to Rs70.56 billion lent in the same period of 2011.

Zarai Taraqiati Bank Limited (ZTBL), the largest specialised bank, provided loans of Rs19.28 billion to the farmers, down 8.39% from a year ago.

Punjab Provincial Co-operative Bank Limited (PPCBL) disbursed Rs3.59 billion, down 7.02% compared with Rs3.87 billion disbursed in the same period of previous year.

Fourteen domestic private banks also offered loans worth Rs33.16 billion in July-December 2012, an increase of 36.84% from Rs24.23 billion last year.

Five microfinance banks – Khushhali Bank, NRSP Microfinance Bank, The First Microfinance Bank, Pak Oman Microfinance Bank and Tameer Microfinance Bank – gave Rs8.25 billion in loans compared with Rs5.50 billion last year.

The State Bank has set for banks an indicative agricultural credit disbursement target of Rs315 billion for the current financial year ending June 2013.

Published in The Express Tribune, January 22^nd, 2013.

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