Banks Disburse Over Rs 124 Billion Agricultural Credit

Agricultural credit disbursement by commercial and specialized banks rose 6.33 percent year-on-year to Rs 124.168 billion in the first seven (July-Jan.) of the current 2009-10 fiscal year (FY10). In absolute terms, disbursement of credit to the agriculture sector increased by over Rs 7.391 billion in July-January, 2010 when compared with total disbursement of Rs 116.777 billion in the same period last year.
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 64.208 billion in July-Jan., 2010 compared with Rs 56.862 billion in July-Jan. 2009, depicting an increase of Rs 7.346 billion or 12.92 percent. Zarai Taraqiati Bank Limited, the largest specialized bank, disbursed a total of Rs 36.151 billion in July-Jan., 2010, up 9.79 percent when compared with Rs 32.928 billion in the same period last year, while disbursement by Punjab Provincial Co?operative Bank Limited stood at Rs 2.389 billion in July-Jan., 2010 compared with Rs 3.283 billion in the same period last year. Besides, 14 domestic private banks also loaned a combined Rs 21.421 billion in July-Jan., 2010 compared with Rs 23.704 billion disbursed in July-Jan., 2009.
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.