KARACHI, July 17: Disbursement of credit to the agriculture sector by commercial and specialised banks has risen by 25.31 per cent year-on-year to Rs211.561 billion during 2007-08, surpassing the indicative target of Rs200 billion.

The State Bank on Thursday reported that in absolute terms, agricultural credit disbursement rose to Rs42.73 billion in 2007-08 when compared with preceding year’s disbursement of Rs168.830 billion.

Overall credit disbursement by five major commercial banks, including ABL, HBL, MCB Bank, NBP and UBL stood at Rs94.749 billion during the year, compared with Rs80.393 billion last year, depicting an increase of Rs14.356 billion in absolute terms or almost 18 per cent.

Zarai Taraqiati Bank Limited the largest specialised bank, disbursed Rs66.939 billion during the year, compared with Rs56.473 billion in the preceding year.

Disbursement by Punjab Provincial Co-operative Bank Limited (PPCBL) stood at Rs5.931 billion compared with Rs7.988 billion last year.

Besides, 14 domestic private banks (DPBs) also loaned a combined Rs43.941 billion, up 83.27 per cent when compared with Rs23.976 billion disbursed during the preceding year.

State Bank had set an indicative target of Rs200 billion for 2007-08, up from Rs160 billion of preceding year showing an increase of Rs40 billion.