National Bank Leading in Agriculture Financing

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National Bank of Pakistan (NBP) is leading in agriculture financing among other banks and financial institutions in the country by lending Rs 3,300 Crore among nearly 176,372 farmers from July 2011 to March 2012, surpassing its target of Rs 3200 Crore for nine months. 

As per State Bank of Pakistan (SBP), NBP outstanding loans’ volume is higher by Rs 9.763 billion as compared with the total exceeded amount of outstanding by all five other banks including ZTBL which stood at Rs 228 Crore in March 2012.

NBP’s total loans in one year has exceeded by Rs 976 Crore, rising from Rs2,767 Crore in March 2011 to Rs 3,743 Crore in March 2012. The central has fixed an indicative lending target of Rs 28,000 Crore for the financial year 2011-12, out of this NBP’s Share is highest after ZTBL.

Out of our total 1,277 domestic branches, 875 are involved in catering the needs of farmers. National Bank of Pakistan is at the top of ‘five’ commercial banks of Pakistan, as it offers complete range of commercial banking services along with agriculture services to farmers under one umbrella.

NBP has disbursed Rs 4,240 Crore in agriculture credit financing among nearly 252,000 farmers during July 2010-June 2011, against a target of Rs 4,100 Crore. The  percentage of non-performing loans of NBP was about 5 percent as on December 31, 2011, compared to 15 percent average NPL’s of commercial banks in agricultural.

The other distinguishing feature of NBP is the competitive mark up rate, which is lower than the rate being charged by other commercial banks. The loans disbursed can be divided into two categories, production and development loans.

Under the first category loans are disbursed mainly for the procurement of seeds, fertilizers & pesticides etc. and  the second category is for the purchase of  tractors , farm machinery & implements and construction of modern storage, cattle farms, poultry farms facilities etc.

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