Agri credit disbursement rises by 17% in 9MFY12 – Alfalah Securities Limited

Karachi: Agricultural credit disbursement by banks surged by 17% YoY to PkR 197.361 billion during 9M FY12 (July-March) against the total disbursement of PkR168.687 billion in 9MFY11.

According to Alfalah Securities Limited, as per SBP, overall credit disbursement by five big banks (ABL, HBL, MCB, NBP and UBL) stood at PkR 107.640 billion up by 15.41% against PkR 93.268 bn. The Zarai Taraqiati Bank disbursed PkR 37.844 billion up by 1.26%YoY and Punjab Provincial Cooperative Bank disbursed PkR 6.012 billion up by 36.82% during 9MFY12. The State Bank has set an indicative agricultural credit disbursement target of PkR 285 billion for FY12. The higher agri disbursement is done to promote agriculture sector enabling them to buy fertilizers, tractors, and pesticides etc to improve their crop yield. Therefore, it would be indirectly positive for the fertilizer and tractor companies through higher off takes.