ZTBLs loan recovery improved in 2009

ISLAMABAD - Zarai Taraqiati Bank Limited (ZTBL) has recovered 89 percent of agriculture loans in 2009 against 86 per cent in 2008 and 81 per cent in 2007 respectively.
Recovery of agriculture loans of the bank stood at Rs 69.5 billion during 2009 against Rs 58 billion and Rs 65.9 billion during 2007 and 2008 respectively, said President ZTBL, Muhammad Zaka Ashraf.
During a detailed briefing to media persons on the banks performance during 2009, he said that loans amounting to Rs 77.6 billion were disbursed as compared to Rs 55.9 billion during the year 2007 with a 26 percent growth. While Rs 70.6 billion loans were disbursed in the year 2008.
For the calendar year 2009, ZTBL had planned a credit target of Rs 75b against which loans of Rs 77.6 have been disbursed with a pace of 104 per cent by the end of the year 2009. By this the bank not only achieved the given target but also surpassed it with a margin of about Rs 2b, he claimed.
The bank has earned profit of Rs 4.9 billion during 2009 which is a record in the ZTBL history, he added. In ZTBL NPLs was 29.4 per cent of portfolio at the beginnings of year 2007, which has significantly reduced to 14.4 per cent at the end of 2009.
The reduction in cumulative NPLs by the extent of 14.9 per cent is excellent which brought it to the lowest level. He said that ZTBL was extending its efforts to enhance the deposit volume to strengthen its resources for the maximum coverage of credit need of the farming community. Although it was increased from Rs 4.3 billion in 2007 to Rs 8.8 billion in 2009 with over 100 per cent growth.
President ZTBL further said that during 2009, new lending products and schemes have been initiated such as establishment of model villages to demonstrate new technologies and enhance per acre filed. Similarly, crops loans insurance scheme has been started to safeguard agriculture sector from natural disaster.
Prime Minister Syed Yousuf Raza Gilani and President Asif Ali Zardari took special initiative to provide 20,000 subsidised tractors in two years. In first phase 10,000 tractors were distributed through ZTBL on which 200,000 subsidies per tractor have been provided to successful farmers, he added.
It was pushing establishment of biotechnology institute through PARC for acquisition of technology for hybrid seeds to increase production yield and attain food sufficiency. He said that initiatives has been taken to increase lending facility for introduction of new technologies in agriculture sector such as small harvesters, paddy trans planters, tunnel farming sugarcane planters/ harvesters, hydro phonic cultivation etc.
President ZTBL said that for the first time in the history of the bank, steps were taken to arrange enlisting the bank for receipt of Haj applications and bank successfully handled the Haj operations 2009 and earned profit of Rs 4 million. He further said that Deposit Solicitation has been activated and expected to achieve deposit target of Rs 50b till 2012.
He further added that recorded promotions of all eligible employees/officers were made during 2009 because they were waiting for their due promotion since last 18-20 years.