1QFY15: Agriculture credit disbursement surges 38%

Is almost 20% of the overall annual target of Rs500b.

KARACHI:
Agriculture credit that banks disbursed during the first quarter of 2014-15 amounted to Rs98.1 billion, up 38% from the disbursement of Rs70.8 billion made during the corresponding three-month period of the last fiscal year.

According to the State Bank of Pakistan (SBP), the disbursement is almost 20% of the overall annual agriculture credit target of Rs500 billion.



On an annual basis, the outstanding portfolio of agriculture loans has increased by Rs36 billion i.e. from Rs270 billion to Rs306 billion at the end of September.

Among major banks, Allied Bank and United Bank achieved 24.7% of their respective annual targets while Habib Bank and MCB Bank attained 23.1% and 20% of their annual targets, respectively.


Under the specialised banks category, Zarai Taraqiati Bank (ZTBL) disbursed Rs7.8 billion, or 8.7% against its target of Rs90 billion, while Punjab Provincial Cooperative Bank (PPCBL) could disburse only Rs1.1 billion, i.e. 10% against its target of Rs11.5 billion during the period under review.



Within the 15 domestic private banks, Summit Bank achieved 40.4%, Faysal Bank (31%), Bank Alfalah (30%), Silk Bank (29.2 %), Bank of Khyber (26.3%), NIB Bank (25.8%) and Bank Al Habib (23%) of their annual targets during July-September. Standard Chartered Bank disbursed Rs3.5 billion against its annual target of Rs2.5 billion for 2014-15.

 

Published in The Express Tribune, October 22nd, 2014.

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