KARACHI - Agricultural credit disbursement by banks surged by 20 per cent on year-on-year basis to Rs 149.658 billion in the first seven months (July-January) of the current fiscal year (2011-12). In absolute terms, disbursement of credit to the agriculture sector increased by over Rs 24.772 billion in July-January when compared with total disbursement of Rs 124.886 billion in the same period of the last fiscal year, said State Bank of Pakistan here on Wednesday.
Bank said 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 82.462 billion in July-January compared with Rs 68.481 billion disbursements in July-January, 2011, depicting an increase of Rs 13.981b or 20.42 percent.
Zarai Taraqiati Bank Limited, the largest specialized bank, disbursed a total of Rs 26.361 billion in July-January, 2012, down by 0.03 percent when compared with Rs 26.369 billion disbursement in the same period of the last fiscal year. Punjab Provincial Cooperative Bank Limited disbursed Rs 4.980 billion in July-January, 2012, up by 28.49 percent when compared with Rs 3.876 billion disbursement in the same period of the last fiscal year, the band added.
SBP said fourteen domestic private banks also loaned a combined amount of Rs 28.996 billion in July-January, 2012, up by 10.84 percent compared with Rs 26.160 billion disbursement in the same period of the last fiscal year. Bank said five microfinance banks including Khushhali Bank Ltd, NRSP Microfinance Bank Ltd, The First Microfinance Bank Ltd, Pak Oman Microfinance Bank Ltd and Tameer Microfinance Bank Ltd disbursed a total of Rs 6.858 billion in July-January, 2012 period.
It may be pointed out that the State Bank of Pakistan for the first time has given an indicative target of Rs 12.20 billion to Microfinance banks for disbursement of credit to agriculture sector during the current fiscal year and it may be recalled that the State Bank has set an indicative agricultural credit disbursement target of Rs 285 billion for the current fiscal year.