August 04, 2007	Saturday	Rajab 19, 1428

ISLAMABAD, Aug 3: President Zarai Taraqiati Bank (ZTBL) Mansur Khan has said that there was a greater need to expand outreach of the bank by identifying new borrowers and initiate new products and services.

Speaking at the conclusion ceremony of a two-day ZTBL zonal chiefs conference here on Thursday, Mr Khan said the State Bank of Pakistan (SBP) had assigned the bank a target of 508,475 borrowers for the current financial year and zonal chiefs were expected to expand their outreach to meet the target.

The president said ZTBL must now focus on increased and diversified lending for development purposes for long term agricultural prospects and its uplift.

“We have avenues and scope of increased financing for tractors, tubewells, irrigation facilities, silos for timely storage of farmers produce to yield good return to them,” he said.

According to an official announcement, the president said that besides production loans, due emphasis must be given to diversified lending particularly for development purposes which was needed to balance long term sustainability of agriculture-led growth. Development loans being long term investment cost less with diversified risk factors over a period of time and hence added to the institutional viability also, he added.

Mansur Khan also stressed upon the need for expanded outreach by identifying new borrowers and initiate new products and services which are commercially viable for financial sustainability of the bank.

He also expressed satisfaction over the overall disbursement and recovery operations of the bank in the first six months of the current financial year.

He appreciated the disbursement of Rs32.1 billion (growth of 13 per cent over corresponding period last year) as against actual targets of Rs28.5 billion. He also appreciated overall recovery of Rs36.4 billion (growth of 38 per cent over corresponding period last year) against Rs26.4 billion recovered last year during this period.

The president reminded the field functionaries that besides recovery, deposit mobilisation was vital to channelising more funds towards agriculture community and to strengthen the capital base of the bank.

So deposit level must be raised and for this bank has introduced two schemes i.e. Zarai Bachat account and Zarai Term Deposit Certificates and soon bank is launching Mahana Amadni Account besides offering lockers availability. The Zonal Chief is expected to strive hard for achieving deposit target,” he said.