Agriculture credit disbursement rose 13.5 percent.

 Pakistan Agriculture credit on the rise and farmers are shifting their financial need toward banking system. State Bank of Pakistan issued the six monthly agriculture loan credit figures, which shows that banks disbursed Rs 159.3 billion. Last year banks provide Rs. 140.3 billion  to aggri sector. It shows increased about 13.5 %.

Banks achieved 44% of their annual indicative targets of Rs 360 billion despite multitude of challenges such as high non performing loans, recovery drive, insufficient bank’s infrastructure and overall security and macroeconomic conditions. 

NBP the largest and the most efficient lender to farmer

Among all the financial institutions involved in lending to farmers National Bank of Pakistan (NBP) achieved nearly 120% of its target in agri loans and the second best performer after Allied Bank Limited (ABL), which has achieved 146% of the allocated target for the year ended June 30, 2013.

However, among the ‘Big Five’, NBP is the largest and the most efficient lenders to the farmers. This conclusion can be drawn if one compares NBP and ABL.

The first parameter is over all size of disbursement. While NBP disturbed over Rs57 billion, ABL lent Rs27 billion only.

Banks Surpass Annual Agri Credit Disbursement Target

 

Banks have surpassed the agricultural credit disbursement target of Rs. 315 billion set by the SBP for the year ending 30^th June 2013. Against the indicative target of Rs 315 billion, the banks disbursed Rs 336.1 billion, which is Rs 21.1 billion in excess of the target for FY2012-13 and 14.4% higher than the last year’s disbursements of Rs 293.8 billion. Further, the agri. outstanding portfolio stands at Rs 257.0 billion at end June, 2013 showing an increase of 16% compared with the last year position of Rs 221.5 billion.