KARACHI, Jan 21: Agricultural credit disbursement by banks surged by 12 per cent on year-on-year basis to Rs140.32 billion in the first half (July-December, 2012) of the current fiscal year (2012-13), State Bank reported on Monday.

Despite this 12 per cent increase, the total disbursement of six months was sill not equal to half of the annual target set by the State Bank for the current fiscal.

The SBP said in absolute terms, disbursement of credit to the agriculture sector increased by over Rs15.11bn in July-December, 2012 when compared with the total disbursement of Rs125.21bn in the same period of the last fiscal year.

Overall credit disbursement by five major commercial banks including Allied Bank Limited, Habib Bank, MCB Bank, National Bank and United Bank stood at Rs76.04bn in the six months as compared with Rs70.56bn disbursed during the same period last year depicting an increase of Rs5.47bn or 7.76 per cent.

Zarai Taraqiati Bank Limited (ZTBL), the largest specialised bank, disbursed a total of Rs19.28bn in the six months, down by 8.39 per cent  when compared with Rs21.04bn disbursed in the same period of the last fiscal year. Punjab Provincial Co-operative Bank Limited (PPCBL) disbursed Rs3.59bn down by 7.02 per cent  pared to Rs3.87bn disbursed in the same period of the last fiscal year.

Fourteen domestic private banks also loaned a combined amount of Rs33.16bn during this half yea up by 36.84 per cent as compared to Rs24.23bn of last year. Five microfinance banks including Khushhali Bank Ltd, NRSP Microfinance Bank Ltd., The First Microfinance Bank Ltd, Pak Oman Microfinance Bank Ltd and Tameer Microfinance Bank Ltd disbursed agri loans amounting to Rs8.25bn during July-December, 2012 as compared to Rs5.50bn of the last fiscal year.

The State Bank has provisionally set an indicative agricultural credit disbursement target of Rs315bn to banks for the current fiscal year.