Banks give Rs91 billion in agricultural loans

Meet 25% of the Rs360b annual target in first four months of 2013-14.

KARACHI: Banks have met 25% of the agricultural credit disbursement target as they have provided Rs91.2 billion in loans to farmers in the first four months (July-October) of the current fiscal year.

The disbursement was 7% higher than Rs85.6 billion lent in the corresponding period of last year, according to data released by the State Bank of Pakistan on Thursday.

Outstanding portfolio of agriculture loans rose by Rs37.2 billion to Rs267.4 billion at the end of October this year compared to the same month last year.

Five large banks collectively gave loans of Rs57 billion – 32% of their target – to the farmers, higher by 6.2% from Rs53.7 billion disbursed in the corresponding period a year ago.

MCB Bank achieved 38% of its target while National Bank, Habib Bank, United Bank and Allied Bank achieved 36%, 33%, 22% and 20% of their targets respectively.

Among specialised banks, Zarai Taraqiati Bank loaned only Rs9.3 billion or 13.5% of its target while Punjab Provincial Cooperative Bank (PPCBL) achieved 15% of its target by lending Rs1.36 billion.

Fourteen domestic private banks achieved 24.5% of their target. Seven microfinance banks provided Rs3.6 billion in agriculture loans, meeting 18% of their annual target.



Three Islamic banks disbursed Rs0.15 million to the farmers against a target of Rs0.5 billion under Islamic modes of financing.

For the current fiscal year 2013-14, the State Bank of Pakistan has set the agricultural credit disbursement target at Rs360 billion for banks, which is 14.2% higher than the target of Rs315 billion in the previous year.

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

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