Disbursement of credit to the agriculture sector by commercial and specialised banks increased by 9.31 percent to Rs 202.105 billion during eleven months (July-May) of the current fiscal year (2008-09). Agricultural credit disbursement rose by over Rs 17.21 billion in July-May period when compared with disbursement of Rs 184.892 billion during the same period of last fiscal year (2007-08).
Overall credit disbursement by five major commercial banks--Allied Bank, Habib Bank, MCB Bank, National Bank of Pakistan, and United Bank--amounted to Rs 98.229 billion during this period, compared with Rs 85.584 billion during same period of last fiscal year, depicting an increase of Rs 12.64 billion, or 14.77 percent.
Zarai Taraqiati Bank, the largest specialised bank, disbursed Rs 63.249 billion, up 12.80 percent when compared with Rs 56.072 billion during same period of last fiscal year. Disbursement by Punjab Provincial Co-operative Bank stood at Rs 4.018 billion, compared with Rs 4.338 billion.
Fourteen domestic private banks loaned a combined Rs 36.609 billion in July-May period compared with Rs 38.898 billion of July-May, 2008. The State Bank of Pakistan has set credit disbursement target of Rs 250 billion for the agriculture sector for 2008-09, which is higher by Rs 50 billion, or 25 percent, than last fiscal year''s Rs 200 billion and Rs 38 billion, or 18 percent, higher than actual disbursement of Rs 212 billion in FY08.