Banks achieve 44pc agri target
Karachi: Banks achieved 44 per cent of the annual target for the agriculture loans in the first half of this fiscal year, said the State Bank on Tuesday.
Banks disbursed Rs159.3 billion during the July-December period of 2013-14 compared to Rs140.3bn in the corresponding period last year, an increase of 13.5 per cent. Banks achieved 44 per cent of their annual combined indicative target of Rs360bn despite multitude of challenges such as high nonperforming loans, recovery drive, insufficient bank’s infrastructure and overall security and macroeconomic conditions. The outstanding portfolio of agriculture loans surged by Rs40.8bn or 17.3 per cent i.e. from Rs235.9bn to Rs276.7bn at end December 2013 as compared to same period last year. The increase is mainly due to SBP’s initiative of introduction of annual outstanding indicative targets for banks.
Five major banks as a group disbursed Rs85.4bn or 47.5 per cent of its annual target which is higher by 12.3 per cent from Rs76bn during the corresponding period last year. Amongst the major banks HBL, MCB Bank and NBP achieved 53.3pc, 52.6pc and 50.5pc of their annual targets respectively while UBL and ABL could achieve only 38.6pc and 34.5pc of their targets respectively.
Amongst specialised banks, ZTBL could achieve only 34pc of its target by disbursing Rs23.7bn against its target of Rs69.5bn while PPCBL achieved 48pc of its target by disbursing Rs4.3bn.
Fourteen domestic private banks collectively achieved 42pc of their targets, however, Sindh Bank disbursing Rs672.8m against its target of Rs600m, while Bank Al Habib, Bank of Khyber, the BoP achieved 61pc, 59pc, 51pc of their targets.