SANA

LAHORE (SANA): Zarai Taraqiati Bank Limited (ZTBL) is taking measures to issue in-kind loans to farmers in line with the government efforts for agricultural development by enhancing per acre yield in the country.

The ZTBL President Zaka Ashraf Chaudhry told media on Sunday that farmers would be provided with fertilizers, pesticides, herbicides and other agri inputs on government-fixed tariffs. The farmers would be able to fully focus on improving their agri production, as the in-kind loan facility saves their time by ensuring smooth and hassle-free supply of agri inputs to them, he observed.

To a question, he said that initially, this facility would be launched in seven districts each in Punjab and Sindh including Rahim Yar Khan and Badin.

Zaka Ashraf added that 30 new branches of the bank would be opened by end this year, which would facilitate the growers at their doorstep.

To another query, he said, “We have reactivated the Risk Management System in the ZTBL, while Credit Administration has also been automated up to 60 percent and it will be fully functional by December 2009.”

Elaborating the bank’s hallmarks on various accounts, the President said that ZTBL’s Credit Disbursement is now Rs 75 billion against Rs 66 billion in 2008 and Rs 56 billion in 2007. In June 2009, the recovery rate was calculated at Rs 70 billion against Rs 64 billion and Rs 57 billion during corresponding period in year 2008 and 2007 respectively, he added.

Zaka Asharaf explained that ZTBL’s Non-Performing Loan (NPL) was 32 percent in year 2007, 20 percent in 2008 and in June 2009, it was reduced to 15 percent, while the bank’s deposits remained at Rs 6.3 billion up to June 2009, Rs 4.8 billion in 2008 and Rs 3.5 billion in 2007.

The ZTBL’s profit before tax was Rs 2.1 billion in June 2009, Rs 1.7 billion in 2008 and Rs 1 billion in 2007, he said, adding that net profit during this period calculated at Rs 1.5 billion, Rs 1.1 billion and Rs 500 million respectively.