Banks disburse Rs215b agricultural credit

Banks disbursed Rs215.039 billion in agricultural credit in the first 11 months (July-May) of the current fiscal 2009-10, showing an increase of 6.40 per cent or Rs12.934 billion compared to the same period last year.

In July-May 2008-09, total disbursement of agricultural credit was Rs202.105 billion, the SBP said in a press release on Monday.

The State Bank of Pakistan has set an indicative agricultural credit disbursement target of Rs260 billion for FY10, which indicates that a big amount of Rs45 billion should be loaned in the remaining one month of the year. Banks disbursed a total of Rs233.01 billion to the agricultural sector in FY09.

Overall credit disbursement by five major commercial banks including Allied Bank, Habib Bank, MCB Bank, National Bank and United Bank stood at Rs107.015 billion in July-May 2010 compared to Rs98.229 billion in July-May 2009, depicting an increase of Rs8.786 billion or 8.94 per cent.

Zarai Taraqiati Bank, the largest specialised bank, disbursed Rs67.741 billion in July-May 2010, up 7.10 per cent when compared with Rs63.249 billion in the same period last year, while disbursement by the Punjab Provincial Co‐operative Bank stood at Rs3.861 billion compared to Rs4.018 billion last year.

Besides, 14 domestic private banks loaned a combined Rs36.423 billion in July-May 2010 compared to Rs36.609 billion disbursed in July-May 2009.

Published in The Express Tribune, June 22^nd, 2010.