10MFY14: Banks disburse 76% of annual agri credit target

Amount 11.3% higher than corresponding period of last year.

KARACHI:

Banks disbursed Rs288.4 billion, or 76% of their annual agricultural credit target of Rs380 billion, during the first 10 months of the current fiscal year, according to data released by the State Bank of Pakistan (SBP) on Thursday.

The disbursement is 11.3% higher than Rs259.1 billion during the corresponding period of last year. The outstanding portfolio of agricultural loans increased by Rs35.3 billion (14.4%) in the 10-month period. They increased from Rs245.4 billion to Rs280.7 billion at the end of April.

Five major commercial banks disbursed agricultural loans of Rs149.6 billion or 80.0% of their collective annual target, which is higher by 7.6% from Rs139.1 billion during the corresponding period of the last year. Five major banks – MCB, NBP, HBL, UBL and ABL – achieved 84.2%, 84.0%, 80.0%, 78.0% and 65.0% of their individual annual targets, respectively.

Among specialised banks, Zarai Taraqiati Bank Limited (ZTBL) achieved 76.6% of its target by disbursing Rs53.3 billion against its annual target of Rs69.5 billion while PPCBL achieved 56.1% of its target of Rs10.0 billion by disbursing Rs5.6 billion during the period under review.

Fourteen domestic private banks collectively achieved 68.8% of their annual targets. Under this category, Sindh Bank, Bank Al Habib, Bank of Punjab, Bank Alfalah, Faysal Bank, Soneri Bank, Silk Bank, Bank of Khyber and Habib Metropolitan Bank achieved 87.8%, 86.2%, 80.6%, 78.7%, 71.5%, 68.5%, 62.9%, 60.3% and 59.3% of their annual targets, respectively. Furthermore, NIB Bank could manage only 42%; KASB achieved 34.4%, Askari Bank 28.7% and Summit Bank 19.7% of their annual targets.

Seven microfinance banks as a group disbursed agricultural loans of Rs17.2 billion or 79.8% of their annual target of Rs21.6 billion. Among the microfinance banks, Tameer Microfinance Bank, U Microfinance bank and Pakoman Microfinance bank have already surpassed their annual targets while Khushhali Bank achieved 94.9%, NRSP Microfinance Bank 71.5%, Waseela 59.6% and the First Microfinance Bank achieved 58.9% of their annual targets.

Under the category of Islamic banks, three banks collectively achieved 96.2% of their annual targets by disbursing Rs511.5 million against the target of Rs532.0 million during July-April.

Published in The Express Tribune, May 23^rd, 2014.

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