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ZTBL recovers 89 percent of agriculture loans in 2009 Saturday, 23 January 2010 11:36 Agriculture - Articles ISLAMABAD : Zarai Taraqiati Bank Limited (ZTBL) has recovered 89 percent of agriculture loans in 2009 against 86 percent in 2008 and 81 percent in 2007 respectively. Recovery of agriculture loans of the Bank stood at Rs 69.5 billion during 2009 against Rs 58 billion and Rs 65.9 billion during 2007 and 2008 respectively. This was stated by Zaka Ashraf President ZTBL here on Friday while giving a detail briefing to media on bank s performance during 2009. Zaka Ashraf said that during the year 2009 loans amounting to Rs 77.6 billion were disbursed as compared to Rs 55.9 billion during the year 2007 with a 26 percent growth. While, Rs 70.6 billion loans were disbursed in the year 2008. For the calendar year 2009 ZTBL had planned a credit target of Rs 75 billion against which loans of Rs 77.6 billion have been disbursed with a pace of 104 percent by the end of the year 2009. By this the bank not only achieved the given target but surpassed with a margin of about Rs 2 billion, Zaka Ashraf added. President ZTBL said that Non-performing Loans (NPLs) indicate a very significant indicator depicting intrinsic health of the financial institution in banking sector. In ZTBL NPLs was 29.4 percent of portfolio at the beginning of year 2007, which has significantly reduced to 14.4 percent at the end of 2009. The reduction in cumulative NPLs by the extent of 14.9 percent is excellent, which brought it to the lowest level. He said that ZTBL is extending its all out efforts to enhance the deposit volume to strengthen its resources for the maximum coverage of credit needs of the farming community. Although it was increased from Rs 4.3 billion in 2007 to Rs 8.8 billion in 2009 with over 100 percent growth. Strengthening internal audit is very important for ensuring good governance and adherence to the best practices in banking sector to bring transparency in the system by establishing check and balance system in the various operational activities of the bank. He said that for the first time during the last three years 100 percent audit of the whole bank has been conducted during the last quarter of 2009. He said that bank s profit stood at Rs 4.9 billion in 2009 against Rs 3.9 billion and Rs 1.7 billion during 2007 and 2008 respectively. The agriculture credit provision to the borrowers has increased to 567, 415 borrowers in 2009 as against 475,000 in 2007 depicting 1.2 percent and increase of 92, 415 borrowers. President Zaka Ashraf said that during 2009 new lending products and schemes have been initiated as given below, establishment of model villages to demonstrate new technologies and enhance per acre yield. Similarly, crop loans insurance scheme has been started to safeguard agriculture sector from natural disaster. Zaka Ashraf further said that Tractor plays important role in productivity enhancement as well as transportation of farm produce. Special emphasis was given on tractor financing, which was increased 21,609 during 2009 as compared to 10,275 in 2007. The Prime Minister Syed Yousuf Raza Gilani and President Asif Ali Zardari took special initiative to provide subsidised 20,000 tractors in two years. In first phase 10,000 tractors were distributed through ZTBL on which Rs 200,000 subsidies per tractor has been provided to successful farmers, he added. Pursuing establishment of bio-technology institute through PARC for acquisition of technology for hybrid seeds to increase production/yield and attain food sufficiency. He said that initiatives has been taken to increase lending facility for introduction of new technologies in agriculture sector such as small harvesters, paddy Trans planters, tunnel farming, sugar-cane planters/ harvesters, hydro-phonic cultivation etc. President ZTBL said that for the first time in the history of the bank, steps were taken to arrange enlisting the bank for receipt of Haj applications and bank successfully handled the Haj Operations 2009 and earned profit of Rs 4 million. He further said that Deposit Solicitation has been activated and expected to achieve Deposit Target of Rs 50 billion till 2012. Courtesy : Business Recorder