KARACHI, July 20: The State Bank said on Friday that banks extended Rs293.8 billion in agriculture loans in 2011-12 surpassing the Rs285 target set by the Agricultural Credit Advisory Committee (ACAC) for the fiscal year, which is 11.7 per cent higher than Rs263 billion disbursed in 2010-11.

Further details showed the five large banks collectively disbursed agri loans amounting to Rs146.3 billion or 103.7 per cent of their annual target (Rs141 billion) in fiscal year 2011-12.

National Bank, Habib Bank, MCB Bank, Allied Bank and United Bank have surpassed their annual targets by achieving 106 per cent, 103.5 per cent, 103.3 per cent, 102.8 per cent and 100.7 per cent disbursement respectively.

Zarai Taraqiati Bank disbursed Rs66.06 billion or 94.2 per cent of its annual target of Rs70.1 billion while Punjab Provincial Co-operative Bank Limited (PPCBL) by disbursing Rs8.5 billion or 112 pre cent has surpassed its annual target (Rs7.6 billion) during 2011-12.

Fourteen domestic private banks as a group achieved 112.5 per cent of their target of Rs54.1 billion by disbursing agri loan of Rs60.9 billion.

Five microfinance banks as a group disbursed agri loans of Rs12.1 billion or 99.3 per cent of their annual target of Rs12.2 billion during FY 2011-12.

The banks had been missing the agri credit disbursement targets since 2008-09. Achievement of agri credit disbursement target during the year ended June 30, 2012 was extremely difficult in the backdrop of continuous declining trend in the overall private sector credit and high agri non-performing loans of major banks due to devastating floods of 2010 and heavy rains of 2011 in Sindh province.

The SBP said it adopted a multi-pronged strategy and made all out efforts in achieving the target.