KARACHI: Pakistan’s banks remained 2.66 percent short of the farm credit target in 2010-11 owing to devastating floods in August last year.
The agriculture credit target has been missed by Rs7 billion or 2.66 percent during the last fiscal year to stand at Rs263 billion, according to State Bank of Pakistan (SBP) figures released on Thursday.
The central bank has linked the fall in loans with devastating floods that damaged vast agriculture infrastructure and caused huge losses to standing crops.
However, the overall credit improved during 2010/11 by Rs14.90 billion or six percent if compared with the performance of 2009/10 when banks extended only Rs248.12 billion to the farm sector.
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 Rs140.312 billion in 2010-11 compared with Rs119.609 billion in 2009-10, depicting an increase of Rs20.70 billion or 17.31 percent.
These five banks as a whole surpassed their target by Rs7.9 billion or 5.9 percent as their annual target of agriculture credit disbursement for FY11 was Rs132.45 billion, the SBP said.
Thirteen domestic private banks loaned a combined Rs50.187 billion during last fiscal year (2010-11) compared with Rs43.777 billion disbursed in the preceding fiscal year (2009-10), depicting an increase of 14.64 percent.
These 13 domestic private banks as a group surpassed their annual target of Rs48.90 billion by Rs1.3 billion or 2.6 percent.
Disbursement by Punjab Provincial Co-operative Bank Limited (PPCBL) stood at Rs7.161 billion in 2010-11, compared with Rs5.722 billion in 2009-10, depicting an increase of 25.16 percent. PPCBL surpassed its annual target of Rs 6.85 billion by Rs0.3 billion or 4.6 percent.
However, Zarai Taraqiati Bank Limited disbursed a total of Rs65.361 billion in 2010-11, down by 17.28 percent when compared with Rs79.012 billion in 2009-10. It could achieve 80 percent of its target of Rs81.80 billion.
Province wise data shows that the agriculture credit disbursements to Punjab increased by Rs10.9 billion or 5.1 percent, Sindh by Rs3.8 billion or 14.1 percent, Khyber Pakhtunkhwa by Rs0.5 billion or 7.8 percent and AJK by Rs0.1 billion or 13.2 percent during the last fiscal year when compared with the preceding fiscal year.
However, the disbursements to Balochistan and Gilgit Baltistan declined by Rs0.3 billion and Rs0.1 billion respectively during July-June 2010-11 compared with fiscal year 2009-10.
The disbursement to non-farm sector including livestock, poultry, fisheries increased by Rs7.9 billion or 10.3 percent and to farm sector by Rs7.0 billion or 4.1 percent during July-June 2010-11 compared with fiscal year 2009-10.
Outstanding agriculture credit portfolio of banks increased to Rs193.3 billion at end June 2011 from Rs183.4 billion at end June last year.