Punjab province has utilised Rs 237.5 billion agriculture credit out of the total Rs 500 billion allocated by the State Bank of Pakistan (SBP) for fiscal year 2014-15. The major share of agriculture credit of Rs 237.5 billion was disbursed in Punjab during first eight months of the current fiscal year (July to February) 2014-15 against the target of Rs 390 billion and its share in total disbursement stood at 60.9 percent, according to an official document available with Business Recorder.
In Sindh province banks disbursed an amount of Rs 44.6 billion (or 63.6 percent) against their indicative target of 70.1 billion during July-February 2014-15. According to the document, the Khyber Pakhtunkhwa (KP) province received Rs 5.8 billion or 19.3 percent of target allocated to banks for agricultural lending. Out of the total agricultural credited allocated by SBP, Balochistan received Rs 0.225 billion against the target of Rs 7.5 billion, Azad Jammu Kashmir (AJK) received Rs 0.345 billion against the target Rs 1.2 billion and Gilgit Baltistan (GB) received Rs 0.234 billion against Rs 1.2 target.
The SBP earmarked agricultural credit disbursement target of Rs 500 billion to the banks for the year 2014-15. The target was 28 percent higher than target of Rs 391 billion disbursed in 2013-14. During the period under review banks disbursed Rs 288.7 billion which is 57.8 percent of the overall annual target of Rs 500 billion and 32.3 percent higher than disbursement of Rs 218.3 billion made during the corresponding period last year.
Five major banks disbursed Rs 150.9 billion or 59.8 percent of its annual target and two specialised banks Zarai Taraqiati Bank Limited (ZTBL) and Punjab Provincial Co-operative Banks Limited (PPCBL) disbursed Rs 51.5 billion or 50.7 percent of their target of Rs 101.5 billion. Fifteen domestic private banks collectively disbursed Rs 64.9 billion or 56 percent against their target of Rs 115.6 billion. Seven microfinance banks have disbursed Rs 18.9 billion or 67 percent of their annual targets, however, the four Islamic banks as a group have already surpassed their annual targets by disbursing Rs 2.5 billion against the target of Rs 2.3 billion during the period.
Amongst the five major banks, MCB has achieved 76.3 percent of its annual target, UBL achieved 72.2 percent, HBL 66.6 percent, NBP 46.2 percent while ABL achieved 43.1 percent of its individual annual target. Under the specialised banks category, ZTBL disbursed Rs 46.1 billion or 51.3 percent against its target of Rs 90 billion while PPCBL disbursed Rs 5.4 billion or 46.9 percent against its target of Rs 11.5 billion during the period.
Within 15 domestic private banks, Bank of Khyber has achieved 86.9 percent, Faysal Bank achieved 72.3 percent, Bank Alfalah 53 percent, Silk Bank 43.5 percent, Soneri Bank 43 percent, Bank of Punjab 36.6 percent while Askari Bank could achieve only 35 percent of their annual targets during the period, however, Standard Chartered Bank has disbursed Rs 3.8 billion against its annual target of Rs 2.5 billion.
Out of the total disbursements of Rs 288.7 billion during 2014-2015, Rs 148.3 billion or 51.4 percent was disbursed to farm sector and Rs 140.4 billion or 48.6 percent to non farm-sector. However, during corresponding period last year, a total amount of Rs 218.3 billion was disbursed out of which Rs 118.7 or 54.4 percent was disbursed to farm-sector and non farm sector received Rs 99.6 billion or 45.6 percent of total disbursement by banks.