Agricultural credit disbursement rises

KARACHI - Disbursement of credit to the agriculture sector by commercial and specialized banks has shown an impressive growth of 34.88 percent year-on-year during the first ten months (July-April) of the current 2007-08 fiscal year.

Banks have disbursed a combined total of Rs 157.566 billion to the agriculture sector during July-April period as compared to Rs 116.816 billion in the same period last year, showing an absolute increase of Rs 40.75 billion.

Overall credit disbursement by five major commercial banks including Allied Bank Limited (ABL), Habib Bank Limited (HBL), MCB Bank, National Bank of Pakistan (NBP) and United Bank Limited (UBL) stood at Rs 74.327 billion during the first ten months of the current fiscal year, compared with Rs 54.597 billion during the corresponding period last year, depicting an increase of Rs 19.73 billion in absolute terms or 36.14 per cent.

Zarai Taraqiati Bank Limited (ZTBL), the largest specialized bank, has disbursed Rs 45.773 billion in July-April period, compared with Rs 38.843 billion last year.

, while disbursement by Punjab Provincial Co-operative Bank Limited (PPCBL) stood at Rs 3.983 billion, compared with Rs 5.464 billion last year. Besides, 14 domestic private banks (DPBs) also loaned a combined Rs 33.482 billion during July-April period, up 87 percent when compared with Rs 17.912 billion disbursed last year.

It may be recalled that the State Bank of Pakistan has set an indicative target of Rs 200 billion for the current fiscal year, up from Rs 160 billion in the last fiscal year, showing an increase of Rs 40 billion.

During the last fiscal year, commercial and specialized banks had disbursed a total of Rs 168.83 billion to the agriculture sector.