KARACHI: State Bank said on Tuesday that agricultural credit disbursement by banks surged by 13.1 per cent on year-on-year basis to Rs255 billion in the first 11 months (July-May) of the current fiscal year (2011-12).

The bank said that in absolute terms, disbursement of credit to agriculture sector increased by over Rs29.566 billion during this period when compared with total disbursement of Rs225.4 billion in the same period of the last 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 Rs132.3 billion in July-May, 2012 compared with Rs123.1 billion disbursements in the same period of 2011, depicting an increase of Rs9.285 billion or 7.54 per cent.

The Zarai Taraqiati Bank Limited, the largest specialised bank, disbursed a total of Rs54.1 billion during these 11 months, down by 0.34 per cent when compared with Rs54.3 billion disbursed in the same period of the last fiscal year.

Punjab Provincial Co-operative Bank Limited disbursed Rs6.8 billion during this period, up 38.69 per cent when compared with Rs4.9 billion disbursement in the same period of the last fiscal year.

Fourteen domestic private banks also loaned a combined amount of Rs51.6 billion in this period, up by 19.96 per cent compared with Rs43 billion disbursed in the same period of the last fiscal year.

Five Microfinance banks, including Khushhali Bank Ltd., NRSP Microfinance Bank Ltd, The First Microfinance Bank Ltd., Pak-Oman Microfinance Bank Ltd and Tameer Microfinance Bank Ltd disbursed a total of Rs9.9 billion during this period.

The State Bank for the first time has given an indicative target of Rs12.2 billion to microfinance banks for disbursement of credit to agriculture sector during the current fiscal year.