KARACHI: Banks will need to disburse Rs71.975 billion in the remaining two months of the current fiscal year to meet the government’s agricultural disbursement target of Rs260 billion.
Agricultural credit disbursement was Rs188.025 billion in the first 10 months, July to April, of the current fiscal year 2009-10, according to the data released by the State Bank of Pakistan. “It is just an indicative target,” said the State Bank chief spokesman, Syed Wasimuddin, assuring The Express Tribune that the target would be met in the last two months. According to him, the target was usually met in the ending months of the fiscal year. Commercial and specialised banks disbursed agricultural credit worth Rs21.685 billion in the 10th month of the current fiscal year.
Disbursement had been Rs166.34 billion in the first nine months of the fiscal year 2010. Agricultural credit disbursement by commercial and specialised banks rose 7.58 per cent to Rs188.025 billion in the first 10 months of the current fiscal year as compared to the same period last year. In absolute terms, disbursement of credit to the agriculture sector increased by over Rs13.246 billion in July-April, when compared with total disbursement of Rs174.778 billion in the same period last year.
Overall credit disbursement by the five major commercial banks, Allied Bank Limited, Habib Bank Limited, MCB Bank Limited, National Bank of Pakistan and United Bank Limited stood at Rs95.958 billion in July-April 2010 compared with Rs86.552 billion in July-April 2009, depicting an increase of Rs9.406 billion or 10.87 per cent. Zarai Taraqiati Bank Limited, the largest specialised bank, disbursed a total of Rs56.194 billion in July-April 2010, up 7.03 per cent when compared with Rs52.505 billion disbursed in the same period last year.
While disbursement by Punjab Provincial Co operative Bank Limited stood at Rs3.608 billion in July-April 2010 compared with Rs3.61 billion in the same period last year. Besides, 14 domestic private banks also loaned a combined Rs32.265 billion in July-April 2010 compared with Rs32.111 billion disbursed in July-April 2009. It may be recalled that the State Bank of Pakistan has set an indicative agricultural credit disbursement target of Rs260 billion for the fiscal year 2010. Banks disbursed a total of Rs233.01 billion to the agricultural sector in the fiscal year 2009.
Published in the Express Tribune, May 20th, 2010.
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