11MFY14: Agriculture credit clocks in at Rs334.7b
Several banks surpass their annual targets; disbursement up 13.6% .
The outstanding portfolio of agricultural loans has increased by Rs30.3 billion, or 12.3%. PHOTO: FILE
KARACHI:
Banks’ agriculture credit disbursement during the first 11 months of the outgoing fiscal year remained Rs334.7 billion, or 88% of the annual target of Rs380 billion, with many banks surpassing their annual targets.
Banks’ disbursement is 13.6% higher than the disbursement of Rs294.5 billion during the corresponding 11-month period of the last fiscal year. The outstanding portfolio of agricultural loans
has increased by Rs30.3 billion,
or 12.3%, from Rs246.7 billion to Rs277 billion at the end of May over the same period of the last fiscal year.
Five major commercial banks as a group disbursed agricultural loans of Rs169.4 billion, or 90.1% of its annual target, which is higher by 7.9% from the disbursement of Rs157 billion during the corresponding period of the last fiscal year. Five major banks, namely Habib Bank (HBL), MCB Bank, United Bank (UBL), National Bank (NBP) and Allied Bank (ABL) achieved 92.5%, 92.4%, 91.9%, 91.7% and 78.9% of their individual annual targets, respectively.
Among specialised banks, Zarai Taraqiati Bank (ZTBL) achieved 93.1% of its target by disbursing Rs64.7 billion against its annual target of Rs69.5 billion while Punjab Provincial Cooperative Bank (PPCBL) achieved 66.2% of its target of Rs10 billion by disbursing Rs6.6 billion during the period under review.
Fourteen domestic private banks collectively achieved 81.6% of their annual targets. Under the domestic private banks’ category, Standard Chartered Bank has already surpassed its annual target while Bank Al Habib achieved 96.6% of its annual target, Sindh Bank achieved 96.2%, Bank of Punjab 93.2%, Bank Alfalah 89.5%, Faysal Bank 89.1%, Summit Bank 85.3%, Bank of Khyber 84.4%, Habib Metropolitan Bank 81.2%, Soneri Bank 79.4% and Silk Bank 68 % of its annual target. Further, NIB Bank achieved 56.2%, KASB Bank achieved 40% and Askari Bank achieved only 31% of its annual target.
Seven microfinance banks as a group disbursed agricultural loans of Rs19.6 billion, or 90.8% of their annual target of Rs21.6 billion. Amongst microfinance banks, Tameer Microfinance Bank, U Microfinance Bank, Pakoman Microfinance Bank and Khushhali Bank have already surpassed their annual targets while NRSP Microfinance Bank, Waseela and the First Microfinance Bank could achieve 80.5%, 71.6% and 69.3% of their annual targets, respectively.
Under the category of Islamic banks, three banks collectively achieved 98.5% of their annual targets by disbursing Rs523.9 million against the target of Rs532 million during July-May 2014.
According to a press release, SBP Executive Director Syed Samar Hasnain has emphasised the need for boosting credit disbursement to the farmers while urging banks to ensure the achievement of annual agricultural credit disbursement target of Rs380 billion for 2013-14.
Published in The Express Tribune, June 21st, 2014.
Banks’ agriculture credit disbursement during the first 11 months of the outgoing fiscal year remained Rs334.7 billion, or 88% of the annual target of Rs380 billion, with many banks surpassing their annual targets.
Banks’ disbursement is 13.6% higher than the disbursement of Rs294.5 billion during the corresponding 11-month period of the last fiscal year. The outstanding portfolio of agricultural loans
has increased by Rs30.3 billion,
or 12.3%, from Rs246.7 billion to Rs277 billion at the end of May over the same period of the last fiscal year.
Five major commercial banks as a group disbursed agricultural loans of Rs169.4 billion, or 90.1% of its annual target, which is higher by 7.9% from the disbursement of Rs157 billion during the corresponding period of the last fiscal year. Five major banks, namely Habib Bank (HBL), MCB Bank, United Bank (UBL), National Bank (NBP) and Allied Bank (ABL) achieved 92.5%, 92.4%, 91.9%, 91.7% and 78.9% of their individual annual targets, respectively.
Among specialised banks, Zarai Taraqiati Bank (ZTBL) achieved 93.1% of its target by disbursing Rs64.7 billion against its annual target of Rs69.5 billion while Punjab Provincial Cooperative Bank (PPCBL) achieved 66.2% of its target of Rs10 billion by disbursing Rs6.6 billion during the period under review.
Fourteen domestic private banks collectively achieved 81.6% of their annual targets. Under the domestic private banks’ category, Standard Chartered Bank has already surpassed its annual target while Bank Al Habib achieved 96.6% of its annual target, Sindh Bank achieved 96.2%, Bank of Punjab 93.2%, Bank Alfalah 89.5%, Faysal Bank 89.1%, Summit Bank 85.3%, Bank of Khyber 84.4%, Habib Metropolitan Bank 81.2%, Soneri Bank 79.4% and Silk Bank 68 % of its annual target. Further, NIB Bank achieved 56.2%, KASB Bank achieved 40% and Askari Bank achieved only 31% of its annual target.
Seven microfinance banks as a group disbursed agricultural loans of Rs19.6 billion, or 90.8% of their annual target of Rs21.6 billion. Amongst microfinance banks, Tameer Microfinance Bank, U Microfinance Bank, Pakoman Microfinance Bank and Khushhali Bank have already surpassed their annual targets while NRSP Microfinance Bank, Waseela and the First Microfinance Bank could achieve 80.5%, 71.6% and 69.3% of their annual targets, respectively.
Under the category of Islamic banks, three banks collectively achieved 98.5% of their annual targets by disbursing Rs523.9 million against the target of Rs532 million during July-May 2014.
According to a press release, SBP Executive Director Syed Samar Hasnain has emphasised the need for boosting credit disbursement to the farmers while urging banks to ensure the achievement of annual agricultural credit disbursement target of Rs380 billion for 2013-14.
Published in The Express Tribune, June 21st, 2014.