KARACHI, Sept 20: Five major commercial banks of the country extended a total of Rs14.699 billion credit to the farm sector during July-August 2008 period, compared with Rs14.022 billion disbursement made by these banks during the same period of the last fiscal year, showing an increase of almost five per cent or Rs0.647 billion.

The banks extending credit to the sector included Allied Bank, Habib Bank, MCB Bank, National Bank and United Bank.

Commercial and specialised banks continued to extend credit to the agriculture sector which, according to the State Bank of Pakistan, increased 12.48 per cent year-on-year to Rs28.749 billion during the first two months (July-August) of the current fiscal year (2008-09).

In absolute terms, agriculture credit disbursement rose by Rs3.19 billion in July–August when compared with disbursement of Rs25.559 billion during the same period of the last fiscal year 2007-2008.

According to an SBP press release, the ZTBL disbursed Rs5.838 billion, compared with Rs5.060 billion, while Punjab Provincial Co-operative Bank Limited extended credit to the tune of Rs0.713bn, compared with Rs 1.032bn during same period last fiscal year. Apart from this, 14 domestic private banks (DPBs) also loaned a combined Rs7.528bn in July-August 2008 period, which was up 38.27pc when compared with Rs 5.444bn disbursed in July-August 2007.