ISLAMABAD, Sept 1: The Zari Taraqiati Bank (ZTBL) has earned pre-tax profit of over Rs1 billion in the second half of the financial year ended on June 30, 2007 showing an increase of Rs353million compared to the first half.

The bank had earned a pre-tax profit of Rs647 million in the first half of last year ended on December 31, 2006, according to official figures released on Saturday.

“The turnaround was mainly due to substantial increase in recovery of loans,” a spokesman for the bank said in a statement.

Compared to the first half of the last financial year, loan recovery grew by 38 per cent in the second half.

The bank recovered Rs36.378 billion in the second half that was Rs10 billion more compared to the first half.

The recovery of small and medium loans touched Rs2.207 billion in the second half as compared to Rs26.37 billion in the first half.

Lending for agriculture grew by 13 per cent as the bank disbursed Rs32.1 billion in the first six months ending on June 30, 2007. The deposits also grew by 25 per cent during the period under review.

The official spokesman said that the board also appreciated the bank’s new initiatives such as signing of memoranda of understanding (MoUs) with KSB Pumps, Pakistan Dairy Development Company and Nestle for the provision of sustainable rural financial services for irrigation and dairy sector development to increase the production and supply of milk in the country under ‘White Revolution’.

From July to December 2006, the total assets of ZTBL grew by Rs89.045bn as against Rs85.451 billion on December 31, 2006.

“During the period under review JCR-VIS Credit Rating Company reaffirmed credit rating of the bank at AAA/A-1+ with stable outlook,” the statement stated.