Banks surpass annual agri credit disbursement target in FY 2011-12

KARACHI: Banks have surpassed the agriculture credit disbursement target for the fiscal 2011-12 by extending loans amounting to Rs 293.8 billion to agriculturists which is 8.8 billion (103 percent of annual target) more than the indicative target of Rs 285 billion set by the Agricultural Credit Advisory Committee (ACAC) for the whole fiscal year. It is 11.7 percent higher than Rs 263 billion disbursed in 2010-11.
Five large banks collectively disbursed agri loans amounting to Rs 146.3 billion or 103.7 percent of their annual target (Rs 141 billion) in fiscal year 2011-12, higher by 4.3 percent as compared with Rs 140.3 billion disbursed during the preceding fiscal year (FY2010-11).
National Bank of Pakistan, Habib Bank Limited, MCB Bank, Allied Bank Limited and United Bank Limited have surpassed their annual targets by achieving 106.0 percent, 103.5 percent, 103.3 percent, 102.8 percent and 100.7 percent disbursement respectively.
Zarai Taraqiati Bank Limited disbursed Rs 66.06 billion or 94.2 percent of its annual target of Rs 70.1 billion while Punjab Provincial Co-operative Bank Limited by disbursing Rs 8.5 billion or 112.1 percent has surpassed its annual target (Rs 7.6 billion) during FY 2011-12.
Fourteen Domestic Private Banks as a group achieved 112.5 percent of their target (Rs 54.1 billion) by disbursing agri loan of Rs 60.9 billion. The Bank of Khyber, Bank Al Habib, Faysal Bank, Soneri Bank, NIB Bank and Askari Bank have surpassed their annual agri credit disbursement targets by achieving 174.6 percent, 147.6 percent, 136.7 percent, 132.4 percent, 104.1 percent and 100.4 percent disbursement respectively while other remaining banks could not meet their annual targets.
Five Microfinance Banks as a group disbursed agri loans of Rs 12.1 billion or 99.3 percent of their annual target of Rs 12.2 billion during FY 2011-12.
Banks had been missing the agri credit disbursement targets since 2008-09. Achievement of agri credit disbursement target during the year ended June 2012 was extremely difficult in the backdrop of continuous declining trend in the overall private sector credit and high agri non-performing loans (NPLs) of major banks due to devastating floods of 2010 and heavy rains of 2011 in Sindh province.
However, SBP adopted a multipronged strategy and made all out efforts in achieving the target of Rs 285 billion allocated by ACAC. The efforts of SBP officials not only helped banks in achieving their target but also surpassing it. These efforts included swift settlement of crop loan insurance claims, close co-ordination with provincial revenue departments to facilitate the One Window Operation in agri intensive districts for timely completion of revenue formalities, holding of farmers’ awareness and financial literacy programmes at grass root level and follow up of targets with the top management of banks and their agri heads. staff report

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