ISLAMABAD, June 16: Zarai Taraqiati Bank (ZTBL) has made a record recovery of Rs37 billion given as loan to small and big farmers during the year 2003-04, a source told Dawn on Wednesday.

The source said the bank had not only made record recovery but it had also made the highest disbursement of Rs30 billion. The previous highest recovery of loans made by the bank is stated to be Rs24 billion.

This achievement has been made as a result of restructuring of the bank, the source said. Besides, good governance, autonomy, deliverance of high quality, viable and timely financial services have also been made possible through this restructuring.

The source said various steps had been taken to improve the financial viability of ZTBL. These include equity injection, voluntary golden handshake and improved capital adequacy ratio.

The legal status of the bank has been changed under the restructuring and the ZTBL has been constituted as a public limited company. Due to client-friendly policies, the bank has managed to increase the number of borrowers from 4.5 million to five million, the source said.

The ZTBL, he said, was providing 50 per cent of the total agricultural loans being given to the farmers and the remaining 50 per cent was contributed by other commercial banks.

A total of Rs65 billion loans were being provided to the farmers and growers in the country against the required loans of Rs250 billion. Of which Rs35 billion loans are being given by the ZTBL and Rs30 billion by commercial banks.

The source said the ZTBL was providing three types of loans included seasonal loans, running finance loans and micro-credit loans.