After a three-year gap the banks have surpassed the agriculture credit disbursement target during FY12 by loaning Rs 293.8 billion to the agriculturists during July-June of last fiscal year, the central bank reported Friday. It may be pointed out here that the banks had been missing the farm loans targets since FY2008-09. “Achievement of disbursement target during FY12 was extremely difficult in the backdrop of continuous declining trend in the overall Private Sector Credit and high agriculture Non-Performing Loans of major banks due to devastating floods of 2010 and heavy rains of 2011 in Sindh province,” said the State Bank.
The credited amount, it said, is Rs 8.8 billion or 103 percent more than the annual indicative target of Rs 285 billion set by the Agricultural Credit Advisory Committee (ACAC) for the FY12. “It is 11.7 percent higher than Rs 263 billion disbursed in 2010-11,” the regulator said. A bank-wise break-up shows that the five large banks collectively disbursed agriculture 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 compared to Rs 140.3 billion disbursed during FY2010-11.
The National Bank of Pakistan, Habib Bank Limited, MCB Bank, Allied Bank Limited and United Bank Limited surpassed their annual targets by achieving 106.0 percent, 103.5 percent, 103.3 percent, 102.8 percent and 100.7 percent disbursement, respectively. The 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 surpassed its annual target of Rs 7.6 billion. The 14 domestic private banks as a group achieved 112.5 percent of their target that accounts for Rs 54.1 billion and disbursed Rs 60.9 billion. The Bank of Khyber, Bank Al Habib, Faysal Bank, Soneri Bank, NIB Bank and Askari Bank surpassed their annual 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. The five microfinance banks as a group disbursed Rs 12.1 billion or 99.3 percent of their annual target of Rs 12.2 billion. It may be pointed out here that the banks had been missing the farm loans targets since 2008-09. The central bank attributes the achievement of fiscal target to “a multi-pronged strategy” and the all out efforts it had made for achieving ACAC’s target.
