Agricultural credit disbursement goes up

Banks give Rs118b in loans to farmers from July to November.

KARACHI: Banks have disbursed Rs118 billion in agricultural credit to farmers during July-November 2013, meeting 33% of the target set by the State Bank of Pakistan (SBP) for fiscal year 2013-14.

The central bank has provisionally fixed the agricultural credit disbursement target at Rs360 billion. The amount lent by banks in five months is 11% higher than Rs106.6 billion disbursed during the corresponding period of previous year.

Outstanding portfolio of agricultural loans has increased by Rs37.8 billion to Rs267.4 billion by the end of November compared to the same period last year.

Five large banks collectively gave loans of Rs70.6 billion, or 39% of their annual target, higher by 12% from Rs63.2 billion given last year.

MCB Bank has achieved 48% of its annual target while National Bank of Pakistan (NBP), Habib Bank Limited (HBL), United Bank Limited (UBL) and Allied Bank Limited (ABL) have achieved 42%, 41%, 31% and 27% of their targets respectively. Amongst specialised banks, Zarai Taraqiati Bank Limited (ZTBL) could disburse only Rs13.6 billion or 20% of its target of Rs69.5 billion while Punjab Provincial Cooperative Bank Limited (PPCBL) achieved 19.6% of its target by disbursing Rs1.76 billion during the period under review.

Fourteen domestic private banks as a group achieved 31% of their target, however, Sindh Bank, Bank of Khyber, Bank Al Habib, Silkbank, Summit Bank and NIB Bank met 85%, 59%, 45%, 41%, 41% and 38% of their annual targets respectively. Soneri Bank, Bank Alfalah, Faysal Bank, Bank of Punjab and Askari Bank could achieve only 31%, 28%, 24%, 19% and 18.6% of their targets respectively.

Seven microfinance banks as a group disbursed Rs6.6 billion to farmers, meeting 34% of their annual target of Rs19.6 billion. Three Islamic banks collectively disbursed Rs0.25 billion or 47% of their target of Rs0.5 billion under Islamic modes of financing to agricultural borrowers.

Published in The Express Tribune, December 24^th, 2013.

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