Agriculture credit: Banks disburse Rs288.7b during 8MFY15

Amount 32.3% higher than comparative period of previous year

KARACHI: Banks disbursed agriculture credit of Rs288.7 billion during the first eight months of 2014-15, which is 32.3% higher than the disbursements of Rs218.3 billion made during the corresponding period last year.

The disbursed amount is 57.8% of the overall annual target of Rs500 billion. The outstanding portfolio of agricultural loans increased by Rs34.2 billion from Rs273.4 billion to Rs307.6 billion at the end of February on a year-on-year basis. Five major banks as a group have disbursed Rs150.9 billion, or 59.8% of their combined annual target.

Two specialised banks (ZTBL and PPCBL) also disbursed Rs51.5 billion, or 50.7% of their targets of Rs101.5 billion.

Fifteen domestic private banks collectively disbursed Rs64.9 billion, or 56.2% against their target of Rs115.6 billion.



Seven microfinance banks have disbursed Rs18.9 billion or 67% of their annual targets. However, four Islamic banks as a group have already surpassed their annual targets by disbursing Rs2.5 billion against the target of Rs2.3 billion during the period under review.

Amongst the five major banks, MCB Bank has achieved 76.3% of its annual target, United Bank (72.2%), Habib Bank 66.6%, National Bank (46.2%) and Allied Bank could achieve only 43.1% of its individual annual targets.

Under the specialised banks category, ZTBL disbursed Rs46.1 billion, or 51.3 % against its target of Rs 90 billion, while PPCBL disbursed Rs5.4 billion, or 46.9% against its target of Rs11.5 billion, during the period under review.

Within fifteen domestic private banks, Bank of Khyber achieved 86.9% of its annual target, Faysal Bank (72.3%), Bank Alfalah (53%), Bank Al Habib (48.3%), NIB Bank (47.5%), Summit Bank (45.4%), Sindh Bank (45%), Silk Bank (43.5%), Soneri Bank (43%), Bank of Punjab (36.6%) while Askari Bank could achieve only 35% of its annual targets during July-February.

Standard Chartered Bank disbursed Rs3.8 billion against its annual target of Rs2.5 billion for 2014-15. 

Published in The Express Tribune, March  19^th,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.