July to November FY14 : Agricultural credit disbursement by banks up 33 per cent

July to November FY14 :  Agricultural credit disbursement by banks up 33 per cent

KARACHI: The State Bank of Pakistan (SBP) has provisionally allocated agricultural credit disbursement target of Rs 360 billion to banks for the year 2013-14 against which banks have disbursed Rs 118 billion during July-November 2013, which is 33 percent of the target. 
The disbursement is 11 percent higher than Rs 106.6 billion disbursement during the corresponding period last year. The outstanding portfolio of agriculture loans has increased by Rs 37.8 billion - from Rs 229.6 billion to Rs 267.4 billion at end of November 2013 - as compared to the same period last year.
Five large banks collectively disbursed agricultural loans of Rs 70.6 billion or 39 percent of their annual target, higher by 12 percent from Rs 63.2 billion disbursed during the corresponding period last year. 
MCB has achieved 48 percent of its annual target while NBP, HBL, UBL and ABL have achieved 42 percent, 41 percent, 31 percent and 27 percent of their individual targets, respectively. Among specialised banks, ZTBL could disburse only Rs 13.6 billion or 20 percent against its target of Rs 69.5 billion while PPCBL achieved 19.6 percent of its target by disbursing Rs 1.76 billion during the period under review. 
Fourteen domestic private banks as a group achieved 31 percent of their target, however, the banks including, Sindh Bank, Bank of Khyber, Bank Al Habib, Silk Bank, Summit Bank and NIB Bank have achieved 85 percent, 59 percent, 45 percent, 41 percent, 41 percent and 38 percent of their annual targets, respectively. Soneri Bank, Bank Alfalah, Faysal, BoP and Askari Bank could achieve only 31 percent, 28 percent, 24 percent, 19 percent and 18.6 percent of their targets, respectively. Seven microfinance banks as a group disbursed agricultural loans of Rs 6.6 billion or 34 percent of their annual target of Rs 19.6 billion. The three Islamic banks collectively disbursed Rs 0.25 billion or 47 percent as against a target of Rs 0.5 billion under the Islamic modes of financing to agricultural borrowers during the review period.

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