KARACHI: Agriculture credit disbursement in the first four months of the current fiscal increased comparatively but was far behind the target set by the State Bank.

The State Bank on Thursday reported that agricultural credit disbursement by commercial and specialised banks rose 9.1 per cent year-on-year to Rs62.839 billion in July-October 2009-10.

The amount disbursed was just 24 per cent of the target set for the period while it should be around 33 per cent of the total target since four months (1/3rd) of the year have gone.

The State Bank has set an indicative agricultural credit disbursement target of Rs260 billion for FY10.

In the last fiscal year (2008-09) the banks disbursed a total of Rs233.01 billion to the agricultural sector.

The SBP said that in absolute terms, disbursement of credit to the agriculture sector increased by over Rs5.239 billion in the July-October when compared with total disbursement of Rs57.60 billion in the same period last year.

Overall credit disbursement by five major commercial banks including Allied Bank, Habib Bank, MCB Bank, National Bank of Pakistan and United Bank stood at Rs36.915 billion in the July-October compared with Rs31.454 billion in the corresponding period last year, depicting an increase of Rs5.461 billion or 17.36 per cent.

Zarai Taraqqiati Bank, the largest specialised bank, disbursed a total of Rs14.585 billion in July-October 2009, up 20.65 per cent when compared with Rs12.089 billion in the same period last year, while disbursement by Punjab Provincial Cooperative Bank stood at Rs694.427 million compared with Rs882.732 million.

Besides, 14 domestic private banks also loaned a combined Rs10.644 billion in the period under review compared with Rs13.173 billion disbursed the same period last year.