27 % agri credit disbursement target achieved
KARACHI (December 31, 2010) : Commercial and Specialised banks have achieved 27 percent target of agricultural credit disbursement during first five months of current fiscal year 2010-2011 (FY11). However, year on year basis the disbursement during the period has posted a decline of 10 percent.
In absolute terms, disbursement of credit to the agriculture sector decreased by Rs 7.95 billion to Rs 73.157 billion in July-Nov, 2010 when compared with total disbursement of Rs 80.952 billion in the same period last year. Total disbursement during July-Nov 2010, is some 27.10 percent of indicative target of Rs 270 billion set by the State Bank of Pakistan for FY11. While YoY basis it is some 9.63 percent or Rs 7.795 billion less than the same period of last fiscal year.
Source in banking sector told Business Recorder on Thursday that flood across the country has badly affected operation of banking industry in rural areas, resulted decline in agricultural credit disbursement. They said presently growers in the flood affected areas are engaged in reconstruction of their homes and expected to get loan from January 2011, after which some surge is expected in agricultural credit disbursement.
They said that sharp decline has posted in disbursement by Zarai Taraqqiati Bank Limited and five major commercial banks, while agricultural credit disbursement by Punjab Provincial Co-operative Bank Limited and other 14 domestic private banks has posted a slight increase.
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 has registered a decline of 4.19 percent during the first five months of current fiscal year. Agricultural credit disbursement by five major commercial banks stood at Rs 43.054 billion in July-Nov 2010 compared with Rs 44.935 billion in the same period of last, depicting a decrease of Rs 1.881 billion.
During the period Allied Bank Limited has disbursed Rs 6.88 billion (up by 6.17 percent), Habib Bank Limited Rs 10.753 billion (surge by 5.39 percent), MCB Bank Limited Rs 6.852 billion (down by 27 percent), National Bank of Pakistan Rs 14.577 billion (up by 4 percent) and agricultural credit disbursement by United Bank Limited stood at Rs 3.99 billion (decrease by 18.16 percent).
Zarai Taraqqiati Bank Limited, the largest specialised bank, has posted a decline of 42.29 percent during the July-Nov 2010, as it has disbursed a total of Rs 12.594 billion in the first five months when compared with Rs 21.823 billion disbursement in the same period last year. The credit disbursement by Punjab Provincial Co-operative Bank Limited (PPCBL) and 14 private commercial banks has surge by 70 percent and 20.34 percent respectively.
Agricultural credit disbursement by PPCBL stood at Rs 1.470 billion in July-Nov, 2010 compared with Rs 865 million in corresponding period of last year. Besides, 14 domestic private banks also loaned a combined Rs 16.037 billion in first five months of current fiscal year as against disbursement of Rs 13.326 billion in the same period of last fiscal year, depicting a surge of Rs 2.711 billion. It may be recalled that recently for current fiscal year the State Bank of Pakistan has enhanced agricultural credit disbursement target by Rs 10 billion to Rs 2270 billion.