KARACHI: Banks credit disbursement to agriculture sector increased by 11 per cent during the first five months of this fiscal year, said State Bank on Monday.

The State Bank has provisionally allocated agricultural credit disbursement target of Rs360 billion to banks for the year 2013-14.

Against the target of Rs360bn, banks disbursed Rs118bn during July-November 2013 which is 33pc of the target.

The disbursement is 11pc higher than Rs106.6bn during the corresponding period last year.

The outstanding portfolio of agriculture loans increased by Rs37.8bn ie from Rs229.6bn to Rs267.4bn at end November 2013 as compared to same period last year.

Five large banks collectively disbursed Rs70.6bn or 39pc of their annual target, higher by 12pc from Rs63.2bn disbursed during the corresponding period last year.

The MCB achieved 48pc of its annual target while NBP, HBL, UBL and ABL achieved 42pc, 41pc, 31pc and 27pc of their individual targets, respectively.

Among specialised banks, ZTBL disbursed only Rs13.6bn or 20pc against its target of Rs69.5bn.

Fourteen domestic private banks as a group achieved 31pc of their target.

Three Islamic banks collectively disbursed Rs0.25bn or 47pc against a target of Rs0.5bn under the Islamic modes of financing to agriculture borrowers during the review period.