KARACHI: Credit disbursement by banks to agriculture sector was higher than last year in the first seven months of the current fiscal year, but still not up to the target set by the State Bank for the entire year.

The State Bank said on Wednesday that agricultural credit disbursement by banks surged by 20 per cent year-on-year basis to Rs149 billion in the first seven months (July-January) of the current fiscal year (2011-12). In absolute terms, disbursement of credit to the agriculture sector increased by over Rs24.772 billion in the seven months as compared with total disbursement of Rs124.886 billion in the same period of the previous fiscal year.

However, as per full target the total disbursements in the seven months, it should be around Rs166 billion with an average of Rs23.75 billion per month. The State Bank has set an indicative agricultural credit disbursement target of Rs285 billion for the current fiscal year.

Overall credit disbursement by five major commercial banks, including Allied Bank Limited, Habib Bank Limited, MCB Bank Limited, National Bank of Pakistan and United Bank Limited stood at Rs82.462 billion in seven months compared with Rs68.481 billion disbursements during the same period of the previous year.

Zarai Taraqiati Bank, the largest specialised bank, disbursed a total of Rs26.361 billion in July-January, 2012, down by 0.03 per cent when compared with Rs26.369 billion disbursement in the same period of the last fiscal year.

Punjab Provincial Co-operative Bank Limited disbursed Rs4.980 billion in July- January 2012, up by 28.49 per cent when compared with Rs3.876 billion disbursement in the same period of the last fiscal year.

Fourteen domestic private banks also loaned a combined amount of Rs28.996 billion in this span of time, up by 10.84 per cent compared with Rs26.160 billion disbursement during the last fiscal year.

Five Microfinance banks, including Khushhali Bank, NRSP Microfinance Bank., The First Microfinance Bank, Pak-Oman Microfinance Bank and Tameer Microfinance Bank disbursed a total of Rs6.858 billion in July-January, 2012 period. The State Bank of Pakistan for the first time gave an indicative target of Rs12.20 billion to microfinance banks for disbursement of credit to agriculture sector during the current fiscal year.