Agri credit disbursement up 9.10pc in 4 months

KARACHI - Agricultural credit disbursement by commercial and specialised banks rose 9.10 per cent year-on-year to Rs 62.839 billion in the first four months (July-Oct) of the current fiscal year (FY10).
In absolute terms, disbursement of credit to the agriculture sector increased by over Rs 5.239 billion in July-October, 2009, when compared with total disbursement of Rs 57.60 billion in the same period of last year.
The SBP reported on Thursday that overall credit disbursement by five major commercial banks including Allied Bank Limited, Habib Bank Limited, MCB Bank Limited, National Bank of Pakistan and United Bank Limited stood at Rs 36.915 billion in July-Oct, 2009, compared with Rs 31.454 billion in July-Oct, 2008; depicting an increase of Rs 5.461 billion or 17.36 per cent.
Zarai Taraqiati Bank Limited, the largest specialised bank, disbursed a total of Rs 14.585 billion in July-Oct, 2009; up 20.65 per cent when compared with Rs 12.089 billion in the same period of last year, while disbursement by Punjab Provincial Cooperative Bank Limited stood at Rs 694.427 million in July-Oct., 2009, compared with Rs 882.732 million in the same period last year.
Besides, 14 domestic private banks also loaned a combined Rs 10.644 billion in July-Oct., 2009, compared with Rs 13.173 billion disbursed in July-Oct, 2008.
It may be recalled that the State Bank of Pakistan has set an indicative agricultural credit disbursement target of Rs 260 billion for FY10. Banks disbursed a total of Rs 233.01 billion to the agricultural sector in FY09.