Zarai Taraqiati Bank Limited formerly known as Agricultural Development Bank of Pakistan is now one the main credit supplier to the agricultural sector in the country. It was established in 1961 b the merger of Agricultural Development Finance Corporation (ADFC) and the Agricultural Bank of Pakistan (ABP). The ZTBL has its head office Islamabad. The ZTBL concentrates on modernization of agriculture, increased farm productivity with emphasis on the provision of credit to small farmers and rural women. The credit is provided to the farming community for the purchase of primary inputs like fertilizers; pesticides, machinery, poultry farming, dairy farming etc. It aims at rural self employment and poverty reduction of the farmers in the villages.
Share capital. The authorized capital of the Bank is Rs. 40Q0 million and paid up share capital 3214 million.
Bank operations. The Zarai Taraqiati Bank Limited operates through a net work 343 branches and regional offices and a team of 1459 Mobile Credit Officers.
Adoption of village based banking.
The Zarai Taraqiati Bank Limited initially started branch based credit scheme to the farmers. As most of the farmers were not able to get benefit from the loans advanced by Zarai Taraqiati Bank Limited, it introduced Supervised Credit Scheme in 1979. The Supervised Credit Scheme is a farmer oriented scheme. Under this Scheme, the potential farmers are contacted in their fields. Their credit need is assessed at the farms and the credit and technology are provided to them after necessary documentation in their own villages. The Scheme is, therefore, village based rather than branch based.
The ZTBL advances, short, medium and long term loans to the farmer. The short terms loans are given for financing the cost of raising, processing, and marketing of crops and other agro-based industries. The medium term loans are provided for the purchase of agricultural implements, levelling of land and setting up of agro industries. The long term loans are provided for the purchase of tractors, installing of tube-wells, construction of warehouses, etc. The various loan operations are:
1. Disbursement of loans. Total agricultural Loans amounting to Rs. 93 billion were disbursed to the farming com.mun1t for the purchase of primary inputs, tractors, poultry and live stock sector (July to May 2004-05). The share of ZTBL in the supply of total agricultural credit by institution was 34.1% in the same period.
2. ZTBL role in poverty reduction. The ZTBL is supplementing the Government’s programme for, poverty alleviation. It is providing financial assistance to rural poor in.
(i) Credit programme for women and
(ii) Micro Credit Scheme.
3. Farm mechanization and water resource development. The ZTBL is helping the Government for increasing farm productivity .and achieving: self-sufficiency in food production. For achieving this objective, the Bank ha played a key rote in providing finance for the purchase of tractors, installation of tube-wells, threshers, combine harvestors and other farm implements which help in increasing farm yields.
4. One Window Operation. The provision of loans to the farmers at one place is the most successful scheme of ZTBL. The small farmers holding 25 acres irrigated land or 50 acres un-irrigated land are getting benefit under this scheme.
5. Credit to Women Programme. The main objective of this programme of ZTBL is to make credit available to rural women through female Mobile. The Bank under this Scheme has disbursed Rs.49 million to 10 rural women for farming and non-farming activities such as poultry, fishery, orchard, forestry etc. during the year 2004-05.
6. Micro Credit Scheme. The ZTBL has launched Micro Credit Scheme since 2000 to engage rural poor in increasing income through engagement in cottage industries. Under it, a maximum of Rs. 25 thousand can be advanced against both surety and security. During the year 2004-05, loans of Rs. 33 million (July — March) were disbursed in 1398 loan cases.
7. Revolving Finance Scheme. This scheme is also in operation since 1999. Under this scheme the loan is provided to the creditworthy farmers for meeting the seasonal agricultural requirements.
8. Recovery operations. There is a phased improvement in the recovery of loans to the farmers. A sum of Rs. 23.9 billion were recovered during the year 2003-04.
At present ZTBL, Commercial Banks cooperatives and domestic private banks are providing credit to the farming community. The share of ZTBL in the supply of agricultural credit by institutions in the year 2004-05 (July — March) is 34.1%. The share of commercial banks is 48% of the total agricultural credit disbursed. The share of cooperative was 7.6% and of private bank 10.3%.
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