5MFY15: Disbursement of agriculture loans 42.7% higher

Banks disburse 33.5% of Rs500-billion annual target.

KARACHI: Banks disbursed Rs167.6 billion during the first five months of fiscal year 2014-15, which constitutes 33.5% of the overall annual agriculture credit disbursement target of Rs500 billion.

According to the State Bank of Pakistan (SBP), credit disbursement in July-November has been 42.7% higher than the comparable figure of Rs117.4 billion recorded over the same period of 2013-14.

The outstanding portfolio of agriculture loans has increased Rs36 billion to Rs302.8 billion at the end of November compared to same month of the preceding year.

Among major banks, MCB Bank has achieved 52.5% of its annual target, the SBP said. The achievement of the individual annual target for other banks was: United Bank (45.2%), Habib Bank (40.9%), Allied Bank (30.9%) and National Bank (27.7%). Under the specialised banks category, Zarai Taraqiati Bank disbursed Rs15.7 billion, or 17.5% of its target of Rs90 billion, while Punjab Provincial Cooperative Bank disbursed Rs2.1 billion, or 18.2% of its target of Rs11.5 billion, during the five-month period.



Within the 15 domestic private banks, the target achievement was: Bank Alfalah (47.8%), Faysal Bank (47.7%), Summit Bank (44.7%), Bank of Khyber (42.6%), NIB Bank (36.7%), Silk Bank (34.7%), Bank Al Habib (32.9%), Soneri Bank (25.9%), Bank of Punjab (21.5%) and Askari Bank (21%).

However, Standard Chartered Bank disbursed Rs3.6 billion against its annual target of Rs2.5 billion for 2014-15. Under the microfinance category, seven microfinance banks as a group disbursed Rs7.6 billion against their annual target of Rs28.2 billion. Under the Islamic mode of financing, four Islamic banks collectively disbursed Rs0.7 billion against their target of Rs2.3 billion.

Published in The Express Tribune, December 19^th, 2014.

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