ISLAMABAD - Zarai Taraqiati Bank Limited (ZTBL), with recent structural reforms in place by the management, has embarked upon diversification of its lending operations in new lending ventures/areas.
These areas include agriculture value added, agri supply chain relationships. In this regard, the Bank introduced “Rural Development Scheme for Azad Jammu and Kashmir (AJK)” aiming at dairy and livestock development. Similarly, a scheme for “Establishment of Silage Units” is also launched across the country to increase dairy and livestock productivity by providing nutritional stored forage to animals. The Bank also launched “Financing scheme for Milk Chilling Unit” to support value addition of dairy products and dairy supply chain efficiency. Further in order to serve its clientele from cost burdens, the Bank has embarked upon digital service platforms on cost effective basis inculcating transparency plus efficiency in addition to expansion in outreach.
These initiatives enabled farmers to have leverage opportunities for sustainable cash flow generations especially during pandemic and locust crises.
In order to mitigate the impacts of climate change and to promote floriculture sector in the country the Bank launched “Agri. Financing Scheme for Floriculture & Green House Gases” throughout the country. This scheme is facilitating rural populace in utilization of their best potential to earn their livelihood through cultivation of flowers & off season vegetables (agri. value added). The Bank also launched Financing for Oil Expeller Unit to support supply chain relationship and to strengthen the edible oil production in the country.
Further to bridge the gap between the skewed cash flow of small farmers (as most of the clientele base approximate 95% consists of marginalized/small land holders) attributed to pandemic and locust attack, ZTBL has participated actively in rehabilitation of small farmers and successfully implemented Mark-up subsidy scheme announced by the Prime Minister of Pakistan under Fiscal Package in the wake of COVID-19 with collaboration of Ministry of National Food Security & Research. Under this arrangement small farmers having land holding less than 12.5 acres are offered subsidized markup facilities, where less than 3% mark-up is charged by the farmers, while the federal government has taken up remaining markup liability up to 10% for the season 2020-2021. Under this initiative 267,673 farmers’ have benefited with extended markup subsidy of approximately Rs. 1.2 billion.
In compliance with Financial Action Task Force (FATF) recommendations, the ZTBL has been arranging exclusive trainings sessions on Anti Money Laundering (AML)/Counter Terrorism Financing (CFT)/Countering Proliferation Financing (CPF) for its employees and valuable customers. Recently, the Bank has facilitated 4,009 participants by arranging 314 sessions at various locations in the country under the supervision of Chief Compliance Officer of the Bank. A report on Bank’s internal ML/TF Risk assessment has also been submitted to SBP by the Bank, which was later on presented to FATF, showing efforts of Pakistan in mitigation of ML/TF risk pose to the country. Moreover, an Action Plan 2020, has been prepared by the Bank to meet the growing and stringent requirements of FATF/SBP.
The bank has established a centralized structure for scrutiny and credit sanctioning using digital platform for ensuring transparency and efficiency in credit disbursement mechanism. Through this mechanism the Bank has not only save its cost of credit delivery but also control the prudent lending and subsequent reduction in Non-Performing Loans (NPLs).
In order to strengthening and boost recovery operations, four Provincial Chiefs have been deployed in field and strengthened through establishing Regional Chiefs (NPL & SAM recovery). In line with SBP’s prudential regulations and best international practices, account opening function has been centralized by establishing a unit of Centralized Processing Unit (CPU) at Head Office Islamabad.
The Bank has successfully played in Alternate Delivery Channels platforms and has installed Automated Teller Machines (ATMs), established a call center and positively acquired membership of National Institutional Facilitation Technologies (NIFT) and Real-Time Gross Settlement (RTGS). Under these platforms, the Bank has enabled in funds flow/transfers across the country, and subsequent launch of On line banking services. An android mobile application for Mobile Credit Officers has been made for enhancing outreach, transparency and operation efficiency on low cost basis.