Agriculture credit disbursement 46 percent target achieved in July-January period

Commercial and specialised banks have achieved 46 percent of target of agricultural credit by disbursing over Rs 124 billion credit in first seven months of current fiscal year. Sources told Business Recorder on Wednesday that an indicative agricultural disbursement target of Rs 270 billion was set by the State Bank of Pakistan for current fiscal year 2010-11 (FY-11).
During the initial months of current fiscal year agricultural credit disbursement by commercial and specialised banks was weakened because of flood, and posted a decline of some 4.38 percent in first half (July-December 2010). However, in the first month of second half, credit disbursement witnessed improvement and in January, 2011 alone banks disbursed Rs 23.3 billion, which was Rs 5.4 billion or 30 percent higher than Rs 17.9 billon disbursed during January, 2010.
With this high disbursement in January 2011, total disbursement in first seven months of current fiscal year also surged to Rs 124.8 billion against the annual target of Rs 270 billion, achieving 46 percent of the target. Agricultural credit disbursement is also 0.57 percent or Rs 700 million higher than the same period of last fiscal year, in which banks disbursed Rs 124.1 billion.
Sharp decline has been posted in disbursement by Zarai Taraqiati Bank Limited, while five major commercial banks and Punjab Provincial Co-operative Bank Limited and other 14 private banks 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 registered an increase of 6 percent.
Disbursement by five major commercial banks stood at Rs 68.48 billion in July-January of FY-11 compared with Rs 64.219 billion in same period of last, depicting a surge of Rs 4.27 billion. Allied Bank Limited disbursed Rs 9.524 billion, Habib Bank Limited Rs 15.77 billion, MCB Bank Limited 12.53 billion, National Bank of Pakistan Rs 22.86 billion and United Bank Limited Rs 7.78 billion.
Zarai Taraqiati Bank Limited, the largest specialised bank, disbursed Rs 26.36 billion in first seven months of current fiscal year, showing decline by 27 percent or Rs 9.79 billion when compared with Rs 36.15 billion disbursement in the same period of last fiscal year.
However, disbursement by Punjab Provincial Co-operative Bank Limited (PPCBL) and 14 private commercial banks surged by 62.23 percent and 22 percent respectively. Agricultural credit disbursement by PPCBL stood at Rs 3.875 billion in July-January of 2011 compared with Rs 2.38 billion in corresponding period of last year. Besides, 14 domestic private banks also loaned a combined Rs 26.15 billion in first seven months of current fiscal year as against disbursement of Rs 21.42 billion in same period of last fiscal year.