ZARAI TARAQIATI BANK LTD.
Submited to:
Sir, Fida Hussain Bukhari
Submitted by:
Adnan Ijaz
M08MBA071
Specialization in Finance
MBA Banking & Finance 2008-2010
Hailey College of Banking &
Finance
In the name of ALLAH the
most benificent, the most
ACKNOWLEDGEMENT
I have great sense of gratitude for the most Beneficent and
Merciful Allah who has always helped me in all matters of life .I
tried but He rewarded me more than the tried.
I have deep feelings for whole of my family, in general, and for
my Father, my Mother and my elder brother, in particular .They
have always soothed me, elevated me and their words and du’a
has floated me in the deep seas of troubles. All of my successes
are due to the prayers of my family.
I am thankful to all of my teachers and my class fellows and
friends whom cheerfulness and guidance is an asset for me .I am
especially thankful to the bank staff who has given me
opportunity to get precious practical knowledge and also for their
guidance during my internship. Without the help of all these I was
not able to complete this report.
Preface
This Internship report is the compulsion put in by Hailey College of Banking and Finance for the award of master degree in business administration.
In order to accomplish the task of completion of the degree, I choose the renowned and reputed organization that is the Zari Taraqiati Bank Ltd. I went through 6 weeks internship training in the bank in order to perceive the true art and the practical picture of banks’ working and to go through the process by which the organization is making very good out of its limited resources. The report is based on the introduction of the bank, products offered, financial analysis and assignments I
handled during my internship.
The report is divided into two main parts; the first part includes the introduction of bank, its products and financial analysis while the second part is based on the assignments I handled during my internship.
I am positive that the college will oblige me by giving its
recommendation and consent for the approval of the degree and the purpose for which I have gone through training and report writing procedure will be served positively.
Table of Contents
... 8
Part One...8
Ch. 1: Introduction of Zarai Tarqiati Bank Ltd...8
Chapter 1...9 History ...9 Credit Rating...11 Corporate Vision... 12 Corporate Mission... 12 Corporate Objectives...13
Transformation of ZTBL to R.F.I of the country and road to excellence...14
Branch Network...16
Management Hierarchy...17
Board of Directors...20
A Brief Resume of President...21
...24
Kissan Support Services Ltd...24
KSS Aim... 24
KSS Operation... 24
Objectives... 24
Services/Activities so far undertaken by KSS...25
Chapter 2...27
Products and Services...27
ZTBL Locker Facility ...27
Products offered to Meet Finance Need of Farmers...28
Types of Loans Advanced...28
Loan Schemes...29
Supervised agriculture scheme:...29
Zarkhaiz (one window operation)...29
Sada Bahar Scheme...30
Tea financing scheme...30
Crop maximization project...31
PER ACRE CREDIT LIMITS...32
Major Crops... 32
Minor Crops... 32
Growing Agro Forest Trees...33
Growing Orchards... 33
Types of Security...34
Immovable Property...34
Moveable Property and Guarantees...34
Personal Surety...35
Debt Equity Ratio...36
Repayment Periods...37
Recovery Procedure...37
A) Recovery Schedule...37
b) Issuance of Notices ...37
c) Legal Action ... 38
d) Rescheduling of Loan Repayment Facility...38
d) Down Payment for Rescheduling of Loans ...39
Part Two...67
Ch. 5: Assignments I handled during my Internship...67
Chapter 5...68
Organogram of Mian Channu Branch...68
Redemption of loan...69
Opening of Current Account...73
1: Acquiring Original CNIC...73
2: Filling Current Account Form...74
3: Filling of Know Your Customer Form...75
4: Current Account Specimen Card...76
5: Registering name in the Current Account Register (Issuance of A/C No.)...76
6: Filling of Deposit Slip of starting amount...77
7: Signing by AMO and Manager...78
8: Issuance of Cheque book...78
9: Opening account in the ledger of bank...78
ZTBL Flood Relief Fund 2010...82
Writing of Vouchers...84
1. Debit Voucher... 84
2. Credit Voucher... 84
3. Transfer Voucher...84
Sample of Debit/Credit Voucher...86
Sample of Transfer Voucher...92
Daily Transaction Scroll...93
Making Entries in the Ledgers...95
Disbursement and Recovery Entries...95
Revolving SBS Loan...97
Opening and Closing Cash...101
Learning as an internee...102 Duties...102
Part One
Ch. 1:Introduction of Zarai Tarqiati
Bank Ltd.
Ch. 2:Products Offered
Ch. 3:Financial Analysis
Ch. 4:SWOT Analysis
Chapter 1
The Zarai Taraqiati Bank
Limited (ZTBL) (formerly known
as Agricultural Development Bank of Pakistan) is the largest public sector financial
development institution with a wide network of 27 Zonal Offices, 9 Audit Zones and 352 branches in Pakistan. The bank serves around half a million clients
annually and has over one million accumulated account holders.
History
Pakistan is an agricultural country and more than 60% of its population is working related to agriculture. A development in the agricultural sector will no doubt result in the development of the whole country. To keep With a view to meet this basic need the Agricultural Development Finance Corporation was set-up in 1951, and was entrusted with the task of providing financial facilities for the development and modernization of agriculture, including: Forestry, Fishery, Animal Husbandry, Poultry, Dairy Farming.
Later on the Agricultural Development Bank of Pakistan was also established in September 1957, under the Agricultural Development Bank Act. The Bank is to provide credit in cash or in kind, warehousing
As the functions of the Agricultural Development Finance Corporation and Agricultural Development Bank were similar and since both were working with capital provided by the Government, they were merged into one organization known as Agricultural Development Bank of Pakistan on February 18. 1961. The Agricultural Development Bank of Pakistan was a banking company for the purpose of the Banking Companies Ordinance and the State Bank of Pakistan Act.
On 14 December 2002 the Federal Government has converted the Agricultural Development Bank of Pakistan (ADBP) into Zarai Taraqiati Bank Ltd (ZTBL) and the new venture has started its operation with immediate effect. The new corporate structure redefines the banks statue as a public limited company with an independent Board of Directors promulgated under the presidential ordinance which, aims at ensuring good governance, autonomy, delivering high quality, viable and timely financial services to a greater number of clientele in the agricultural and rural segment of the country with adequate returns to the stakeholder.
After this incorporation all the assets and liabilities of ADBP became the assets and liabilities of ZTBL. This restructure was carried out with the aim to improve the working and role of bank in the agricultural development.
The bank is completely owned by the government and it has head office in Islamabad.
Ownership Government
Type of Institution Specialized Bank
Established 1961
President & CEO Muhammad Zaka Ashraf
Equity 18.7 Billion (2009)
Headquarters Islamabad, Pakistan
Total Disbursement PKR 77.7 billion (as Dec.31st, 2009)
Homepage www.ztbl.com.pk
ZTBL is providing affordable, rural and agriculture financial services to the rural Pakistan, comprising 68 % of the total population. The Bank through a country-wide network of 352 branches is serving around half a million clients annually and over one million accumulated account holders with the average loan size of around Rs.89,000.
Credit Rating
In August 2010, ZTBL continued to achieve AAA credit rating by JCR-VIS.
Yea
r Entity Stand Alone Outlook
201
0 AAA/ A-1+ B+/ B Stable 200
9 AAA/ A-1+ B+/ B Stable
The credit rating of the bank is due to the reason that bank enjoys sovereign guarantee of the federal government that covers its debt obligations to State Bank of Pakistan (SBP) and ensures safety of deposits under the Banks’ (Nationalization) Act 1974. The bank’s lending book is largely funded through SBP’s credit lines while contribution from deposits remains nominal. ZTBL is actively exploring different options for resource mobilization including bilateral/multilateral arrangements with financial institutions. In case these efforts materialize; it would diversify the existing funding source of the bank, thereby reducing reliance on the SBP.
Corporate Vision
Dedicated to serve the needs of the farming community, by
delivering financial products and technical services on a
competitive and sustainable basis, in a convenient, efficient and
professional manner, leading to success of the Bank and the
farmers.
Corporate Mission
To play effective role in the promotion of economic growth, by
enhancing the availability of credit to the agriculture sector,
through reliable access to sustainable financing, special lending
programs, technical assistance, and other products & services,
and to promote career development opportunities for increasing
professionalism and technical proficiencies of employees.
Corporate Objectives
1. Develop and operate as a financially and operationally sustainable R.F.I of the country.
2. Assist rural community, particularly the small farmers, in raising their productivity and income levels through timely delivery of credit, advisory and ancillary services.
3. Build ZTBL's image as a proactive, client friendly, financially & operationally sustainable with indigenous product deployment.
4. Establish and provide backward and forward linkages to strengthen agri. value added commodity chains.
5. Engage in public - private and wholesale - retail partnership to deepen outreach and reduce operating cost.
6. To function as a rural commercial bank to mobilize rural capital formation and to commercialize the agriculture sector by delivering the true value of credit to the client.
7. Provide a wide range of risk insurance products to its clients.
8. Open up its venues of operation to Domestic & International Banking Industry to avail comparative advantages.
Transformation of ZTBL to R.F.I of the
country and road to excellence.
The conversion of ADBP into ZTBL had a conditionality of the Asian Development Bank (ADB) loan framework as per which a restructuring exercise was initiated. The restructuring process entailed ADB’s Rural Finance Sector Development Program (RFSDP) with the objective to transform ZTBL into a sustainable Rural Finance Institution. It also included the up-gradation of Information technology (IT) infrastructure for which funds from ADB’s loan were to be utilized.
Healthy and well-functioning rural finance markets are directly related to achieving the two key national policy objectives of accelerating rural/agriculture growth and reducing poverty. The realization of these objectives depends on the simultaneity of developments in rural finance and non-financial markets to foster the creation of diverse sources of rural finance to build sustainable financial institutions, and stimulate products and capital flows in the rural sector. For this, rural finance must be seen as an integral part of equitable development within a framework of macroeconomic stability.
For the majority, access to affordable rural finance services is also important to enable them to compete in the post-World Trade Organization scenario. Inability to compete because of high financial costs could reduce income of the majority of farmers and rural clients, particularly the small and subsistence clients. Lack of access to affordable rural finance services will also prevent the clients from switching to non-farm activities.
The ZTBL restructuring plan covering the following;
• Governance: establish an environment that facilitates good
governance and accountability;
• Systems: modernize operations through use of technology,
• Business processes: streamline products and delivery systems
so as to reduce transaction costs, simplify operations, and increase outreach;
• Products and services: introduce products and services that
are financially economically viable;
• Human resource development: improve standards and skills
of management and staff and strengthen training capacity; and
• Information Technology: establish new hardware and software
platform to support MIS, accounting system including forensic accounting, and risk management functions.
The reforms shall establish ZTBL as a key R.F.I of the country. By expanding its private sector role, the bank aims to establish network of high tech rural and agri. financial services through intermediations under public private participation and whole-sale -retail lending mechanism.
Branch Network
Details of Regional Offices
Head Office
Islamabad, Pakistan
Total Zones 27
Total Audit Zones 9
Management Hierarchy
The general direction and superintendence of the affairs of the bank are entrusted to a 12 members Board of Directors consisting of a chairman appointed by the Federal Government, the Federal Government officers from the Ministries of Finance and Food and Agriculture, four officers of the four Provincial Governments and one non official nominated by each province. One member on this board represents the State Bank of Pakistan also. However, at present the bank has 7 directors including chairman. The bank also has a president appointed by the federal government and a company secretary.
In ZTBL, the president supervises and directs the Chief Executive Officer who supervises and directs the Head of Department, who then supervise and direct the officers under them. The management hierarchy of bank is as follows;
Earlier the bank was functioning like a pure government institution and permission has to be sought on every step for moving forward. Now the bank management board will be fully empowered to run the affairs of the ZTBL.
More than 2,000 employees of the bank have opted for Voluntary Golden Hand Shake Scheme, offered by the bank to its employees. Bank has established a task force for improving the operational performance of the staff and it was monitoring the disbursement, recovery operations and performance of field functionaries. The task force comprised 10-15 officers and each officer will head a desk
exclusively to monitor 3-4 regions. This task force will be responsible to evaluate performance of each MCO, Manager and Regional Manager on the achievement of bank’s policies regarding credit and recovery periodically.
Board of Directors
Syed Qamar-Uz-Zaman Shah Chairman Board Mr. Muhammad Zaka Ashraf President/ CEO Mrs. Nazrat BashirDirector Mr.Hussain NaghmiShafqat Director Mr. Muhammad Iftikhar Khan Mohmand Director Mr. Tauqir Ahmad Faiq Director
Dr. Khalid Ahmad Khokhar
Director Mr. Imam Bux Sheikh Director
Mr. Muazam Ali Company Secretary
A Brief Resume of President
Mr. Muhammad Zaka Ashraf
Present Portfolios
• President/Chief Executive Officer, Zarai Taraqiati Bank Ltd.
• Chairman & Chief Executive, Ashraf Group of Industries
• Chairman, Pakistan Sugar Mills Association (Punjab Zone) from October, 2006 (Second Tenure)
• Chairman, Sugarcane Research & Development Company, Agriculture Department, Government of Punjab
• President, Petarian Association, Lahore
• Patron-in-Chief Sindh Abadgar Welfare Association (Sindh)
Posts Held
• Advisor to Chief Minister Sindh from 1989 to 1990
• Member Executive Committee, Lahore Chamber of Commerce & Industry from October 2002 to September 2004
• Vice Chairman of The Federation of Pakistan Chambers of Commerce & Industry’s Standing Committee on “Food & Agriculture” from January 2007 to December 2007
Academic Institutions
• Member Board of Governors of Sadiq Public School, Bahawalpur, from 1st January 1989 to 2008
Ms. Nazrat Bashir
Director
Ms. Nazrat Bashir belongs to District Management Group of Civil Services of Pakistan. She is Masters in Economics from New York University, New York, USA and Master in Psychology from Peshawar University, Peshawar.
She has extensively traveled abroad and has attended various international Seminars and Conferences such as on Micro Finance, Anti Money Laundering, and Instruments of Financial Markets etc. Domestically too she has attended various programmes in some of very prestigious institutions of Pakistan.
She possesses 29 years of administrative experience in government service in economic & financial policy and its implementation. At present, she is working as Additional Finance Secretary, Internal Finance, Finance Division, GoP, Islamabad. She is a certified Director on the Panel of Pakistan Institute of Corporate Governance (PICG). Besides Zarai Taraqiati Bank Limited, she is on the Board of Directors of National Investment Trust (NIT) and NBP.
Mr. Shafqat Hussain Nagmi
Director
Mr. Shafqat Hussain Naghmi is a civil servant from DMG Group and currently posted as an Additional Secretary I in Federal Ministry of Commerce, Islamabad. Previously he was posted as Chief Operating
Officer (COO) in Pakistan Cricket Board.
Tauqir Ahmad Faiq
Director
Tauqir Ahmad Faiq represents the Ministry of Food and Agriculture, Government of Pakistan on ASF’s Board of Directors. An expert in District Management, Secretariat Affairs, Development Project Management and International Cooperation with combined experience of 34 years having held the office of Secretary at Government of Punjab’s Zakat and Usher, and Social Welfare Departments; he is currently Additional Secretary at the Ministry of Food and Agriculture, Government of Pakistan. Tauqir Ahmad Faiq has served as Director General Lahore Development Authority Government of Punjab and has
Kissan Support
Services Ltd.
Subsidiary of ZTBL
Kissan Support Services Ltd. Is a subsidiary of ZTBL which is established with a capital investment of 100 Million to help ZTBL in the achievement of its objective and also to make availability of trained human capital to the bank.
KSS Aim
To provide support staff to ZTBL & under take its non core activities.
KSS Operation
Kissan support services operates under its Memorandum & Articles of Association.
Objectives
The main objective of KSS are following:
• To provide to the Bank all kinds of support staff and ancillary services
• To plan, organize and establish training facilities to impart training to the bank’s staff
• Drip Irrigation System to assist the bank clients in marketing of their product and provide storage facilities
• To assist the bank clients in marketing of their product and provide storage facilities
• To provide welfare services to the employees of the Bank including education, vocational training, sports and recreation facilities
• To invest any surplus money of the company not immediately required
• To carry on any business, which may seem to the company capable of being conveniently carried on
• To liaison & establish contracts with agricultural research organizations for development of efficient, effective and appropriate technologies
• To carry on business of providing consultancy, advisory and other agency services and support services to Zarai Taraqiati Bank Limited
• To provide to the Bank’s clients quality products and services for efficient and improved farming
• Etc.
Services/Activities so far undertaken by KSS
• Security Services to ZTBL• Recruitment/provision of staff
• janitorial Services provided to: a. ZTBL Head office buildings b. Ztbl Farms
c. Staff college
g. Sports club h. Warehouse
• Management of Sports Activities
• Management of Sports Activities
• Photocopy Services
Chapter 2
Products and Services
ZTBL Locker Facility
Zarai Taraqiati Bank Ltd. apart from its core functional activity marked with country based agri-business, has started to serve its valued
customers by offering lockers facility. Initially, this facility is being offered at following 11
branches:-S.No Name of Branch
1 Islamabad Branch 2 Main Branch Lahore 3 Peshawar Branch 4 Gujranwala Branch 5 Faisalabad Branch 6 Multan Branch 7 Sahiwal Branch 8 Sargodha Branch 9 Khan Pur Branch 10 Shafi Court Branch
11 Main Branch Gulshan-e-Johar
Following are the approved rates for rent of lockers and key deposits against which lockers will be allocated:
Type Specification Rent Per Annum Rent after grace period Key Deposit
Small 6-1/2"x4-1/2"x23" Rs.1,200/- Rs.1,500/- Rs. 5,000/- Mediu m 13-1/2"x4-1/2"x23" Rs.1,800/- Rs.2,250/- Rs. 10,000/-Large 13-1/2"x8-1/2"x23" Rs.2,500/- Rs.3,125/- Rs.
15,000/-Life Time Locker Facility
On lump-sum payment of locker rent for ten years entitle the lessee to avail the locker facility for life time, without key deposit.
Products offered to Meet Finance Need
of Farmers
Zarai Taraqiati Bank Limited (ZTBL) is a specialized bank providing agricultural credit in rural areas of the country. Pakistan is an agricultural country and near about 60% of its population is working directly or indirectly related to agriculture industry. But instead of being an agricultural country Pakistan is still not gaining benefits from this sector which it can gain. Some time we even does not able to fulfill our food requirement and sometime we have bumper crop but does not have facilities to store them properly, in this way we are wasting our resources. To gain benefit from agriculture sector it is required to be modernized to increase the per acre production and also to build warehouses to store. The main hindrance in the modernization of agriculture is the unavailability of finance. The other financial institutions feel reluctant in giving finance to farmers due to high level of risk in the production of this field. To facilitate farmers and to help in modernization of agriculture sector the government has established this bank which is contributing its part in achieving government objective from many decades. ZTBL is offering a blend of products to fulfill the need of different types of customers.
Types of Loans Advanced
1. Short Term Loans
Short term loans are loans for shorter period of less than a year. It includes, crop production working capital loans recoverable in lump sum commencing after the harvest/marketing of respective crops and within maximum period of 12 months.
2. Medium Term Loans
Medium term loans are for a period of more than a year but less than 5 years. In includes, dairy farming and livestock etc. The installments of these loans are usually paid able in quarterly or half yearly basis.
3. Long Term Loans
Long term loans are for a period of more than 5 years. These are development loans which require large amount and also need some time to show its result in the shape of better production. It includes loans for tractor, agricultural machinery, poultry farming, godowns and orchard in yearly/half yearly installments within maximum period of 8 years.
Loan Schemes
ZTBL is offering the following loan schemes to the farmers.
Supervised agriculture scheme:
Under this scheme agriculture loans are given for short, medium and long term loans up to Rs. 1.00 million per borrower/per case. The loans are sanctioned for In Fats, livestock, orchard, tractor, agricultural machinery, tube well and irrigation facilities etc. under the scheme besides provision of credit, information are provided to the farmers for planning the farm, production, guidance for implementation of the scheme, marketing and repayment of loans.
Zarkhaiz (one window operation)
For timely and conveniently provision of credit to purchase inputs, loans are provided to the borrowers under One Window Operation being conducted twice a week during Rabi and Kharif seasons. Applications processed on the same day whereas sanction payments are made within three days at Branch. For Rabi Crops one window operation from October to January and for Kharif Crops from April to September each year which is extendable as per requirement of particular area.
Sada Bahar Scheme
For providing timely input loans for crops and working capital for poultry and fishery etc, the Bank has launched a Sada Bahar Scheme. Assessment for inputs requirements for the whole year is made at the time of first application. The amount so assessed is treated as Revolving Limit provided it is within the security limit. The Managers are authorized to sanction such loan limits up to Rs.O.500 million. Scheme’s main features are as under:
• Revolving Credit Limit is fixed to cater production credit and ancillary requirements of the farmers during one year period.
• The documentation once completed remains applicable for three years with yearly cleanup/renewal without any further documents.
• The borrowers can draw the credit in lump sum or in installments according to his requirement.
• Like-wise he can repay in lump sum or in installments during the year when his cash position allows him.
• Pass Book containing transactions in his SBS Account is supplied to every borrower free of cost.
Tea financing scheme
In order to increase the tea cultivation in District Mansehra, Swat, Mutta, Shangla par and Dir in Malakand Division, tea financing scheme has been introduced which would not only save the hard earned foreign exchange but would also help improve the socio-economic condition of the inhabitants of the area. The salient futures of the scheme are given as under:
• Maximum Credit Ceiling of Rs.60, 000/- per acre has been fixed.
• Farmers owing land up to five acres are eligible to avail loans.
• Credit will be given in 3 installments: first year Rs.30, 000/-, 2nd year Rs.15,000/- 3rd year Rs.15,000/- provided the disbursed loan is used properly.
• The credit would be repayable within 1 year with 6 years grace period with prescribed markup of 9% per annum. Rebate of 1 % will be allowed in mark-up on timely repayment and proper utilization of the loan.
Crop maximization project
Ministry of Food, Agriculture and Livestock (MINF AL), Government of Pakistan has launched Crop Maximization Project in 109 villages in various districts throughout the country to increase the productivity/yield of crops. Under the project MINFAL has to provide funds of Rs, 299.893 million to ZTBL for disbursing loans to the project farmers for purchase of inputs. Till the time funds of Rs.468 Million have since been received by the Bank for the purpose. These funds are to be revolved for meeting input credit needs in the project villages till 30th June, 2014 after which Bank will return the principal amount to MINFAL. Accordingly Credit needs of the project farmers are being met by respective ZTBL branches through Village Organizations formed for the purpose. Duly the currency of the project Bank is authorized to charge 4% per annum mark-up on loans to project growers to meet its operational cost, however in case of default Bank’s normal rate of return i.e. 9% p will be applicable.
PER ACRE CREDIT LIMITS
Major Crops
Wheat 16,000 Paddy (Rice) 19,000 Sugarcane 30,000 Cotton 21,000 Maize 20,000Minor Crops
Overall Credit Limit Per Borrower Rs.1.000 Million Sada Bahar Scheme under one window operation or
otherwise Rs.0.500 Million
Potato 36000 Bajra 11000 Tobacco 29000 Jawar 11000 Mustard Mung 11000 Gram 12000
Tomato 19000 Guara 3000
Mash 3000 Caster Oil 6000
Lentil 11000 Barlay 9000
Groundnut 14000 Berceme 4900 Sunflower 15000 Janter 4000 Soyabean 12000 Garloc 26000 Canola 13000 Turmeric 25000 Rape Seed 11000 Ginger 30000 Til(Sesame) 12500 Lacern & Shaftal 4500
Suger beet 12000
Growing Agro Forest Trees
SNo. Trees 1st Year 2nd Year 3rd Year
1 Bamboo 34,000 8,000 3,000
Growing Orchards
S.
No. Trees 1st Year Year2nd Year3rd 4th Year 5th Year
1 Mango 24,000 13,000 13,000 13,000 14,000 2 Citrus 21,000 12,000 11,000 13,000 13,000 3 Apple 23,000 12,000 12,000 12,,000 14,000 4 Banana 29,000 20,000 23,000 30,000 26,000 5 Jujuba 19,000 9,000 10,000 10,000 10,000 6 Guava 21,000 12,000 11,000 13,000 13,000 7 Coconut 29,000 6,000 6,000 7,000 8,000 8 Palm Oil 18,000 6,000 7,000 7,000 7,000 9 Dated 33,000 12,000 11,000 12,000 13,000
Mature Orchard/Fruits
crops
Pear 24000 Dates 31000 Loquat 24000 Strawberry 25000 Plum 33000 Tea 60000 Apple 37000 Guava 24000 Papaya 22600 Pomegrante 33000 Almond 32000 Palm 22000Coconut 21000 Olive Oil 13000
Lichi 32000 Walnut 23000
Cherry 33000 Persimen 15000
Mango 37000 Zizi Phus(Bher) 25000
Apricot 31000 Melon 16000
Banana 37000 Water Melon 16000 Peach 32000 Musk Melon 16000 Citrus 34000
Types of Security
Immovable Property
Agricultural Land
• Under Pass Book System 80%
• Outside Pass Book System 70%
• Under Alienability Certificate 66%
• Commercial/Industrial Land under Pass Book 80%
Outside Passbook System
• Urban Residential/Commercial Plots in all localities outside Pass Book 75%
• Alienability Certificate 66%
• Residential/Commercial Buildings 70%
• Lease hold rights of a leased land of CDA/KDA with 99 years lease 70%
Moveable Property and Guarantees
1. Unconditional Bank guarantee from scheduled Banks
Up to maximum amount of an un-conditional Bank guarantee after keeping sufficient margin for un-paid mark-up, cost, charges and expenses.
Full amount of loan plus return and other charges.
3. Government securities
85% of face value or market value whichever is less.
4. Defense Savings & FEB Certificates
75% of value of certificates presented as security.
5. Fix Term Deposits Receipts
85% of face value of deposits receipts.6. NIT Units
80% of the face value or market value whichever is less.
7. Life Insurance policies
85% of surrender value8. Pledge of Potatoes/Seed Potatoes price or market
value which ever is less
Up to 75% of Govt. support.Personal Surety
Against a bond with two sureties under General Credit and one surety in Special Schemes up to Rs.25,000/- or Up to 50% of appraised value of properties of sureties.
Debt Equity Ratio
For
Tubewell/Tractors/Implements/Attachments/Equipments
All kinds of Tubewells/ Turbines25% Within 5 years in
annual/bi-annual installments commencing one year after first disbursement
New Tractor No equity
but 10% of the loan is to be needed in PLS Account
Within 8 years in
monthly/quarterly or half yearly installments to be decided by Manager in consultation with borrower. Used Tractor, Equipments/ attachments/ implements and used tractor
-do- Within 5 years in
monthly/quarterly or half yearly installments to be decided by the Manager in consultation with borrower.
Except Tubewell/Tractors/Implements/ Attachments/Equipments
Production Loan upto Rs.0.100 Million NIL Land holding upto 25 acres/loan amount upto Rs.0.2
Million 15%
Land holding beyond 25 acres to 50 acres/loan amount
beyond Rs.0.2 Million upto Rs.0.5 Million 25% Land holding beyond 50 acres/loan amount beyond Rs.0.5 Million upto Rs.1 Million. 30%
Repayment Periods
S.
No.
Types of
Loans
Recovery Period
1
Short TermLoans Crop production working capital loans recoverable in lump sum commencing after the harvest/marketing of respective crops and
within maximum period of 12 months.
2
MediumTerm Loans Dairy farming and livestock etc. In yearly/half yearly/monthly installments and within maximum period of 5 years.
3
Long TermLoans Tractor, agricultural machinery, poultry farming, godowns and orchard iIn yearly/half yearly installments within maximum period of 8 years and. above.
Recovery Procedure
A) Recovery Schedule
• Recovery schedule in each loan case as per terms of sanction of loan is fixed and communicated to the borrowers after disbursement of loan.
• In case of default or failure in repayment of any installment on due date the mark-up shall continue to be charged and last installment due to this may differ from the amount of installments fixed at the time of disbursement.
b) Issuance of Notices
• Demand notice is issued before the due date of every
installment.
• A Legal Notice is issued one month after the due date informing
the borrower that if the amount is not repaid within next one month, further legal action will be taken to recover the dues.
c) Legal Action
• Legal action can be initiated against the defaulter if loan is not repaid even after expiry of legal Notice period.
• Where the court in bank's favour has decreed a case, account is to be settled by recovery of amount from the auction of the mortgaged property.
• The bank may purchase the mortgaged property if considered feasible to dispose it off later on through auction or in any manner deemed fit for getting the best price.
• The bank may dispose off the mortgaged properties of defaulters for satisfaction of its dues with out intervention of courts under Financial Institutions (Recovery of Finances) Ordinance 2001.Rescheduling of Loan Repayment Facility .
d) Rescheduling of Loan Repayment Facility
• ZTBL allows rescheduling of repayment of installments to itsborrowers in order to maintain credit discipline and to mitigate their genuine problems in real hardship cases and in areas declared as calamity hit by the respective Provincial Governments
• The Rescheduling facility is to be considered by bank on case to-case basis and is to be allowed on borrower's request only.
• The relaxation in recovery period shall not be allowed beyond one year in any case.
• The borrowers shall have to execute a supplementary loan agreement on Non Judicial
• Stamp Paper of appropriate value to give legal cover to extended period.
• The borrowers shall have to pay the return for the extended period.
d) Down Payment for Rescheduling of Loans
Rescheduling Number Rate of down payment as
against due installments to be rescheduled
1st 10%
2nd 20%
SWOT analysis ZTBL
Strengths:
• The total assets of the Bank stand at Rs.84 billion with authorized capital of Rs.25 billion as of 31.12.2005, with a nation-wide working strength comprises 5500 employees.
• The share of ZTBL in total national institutional agricultural credit remains around 35%.
• ZTBL has a recovery ratio of 85%.
• ZTBL has a social network of MCOs that work in every remote corner of country, where any other commercial bank can’t dare to work.
• Utility bills, hajj schemes applications are being collected by ZTBL.
• It has introduced locker facility in some limited branches.
• They have good cooperation with farmers; they meet them at least one time in a week, which produces good cooperation among them.
Weaknesses:
• ZTBL has a less number of people who have technical skill of computer and information technology.
• Up till now many branches could not be brought to online system.
• As the ZTBL has to deal with the illiterate farmers that is why it has to keep itself as simple as the farmer’s mentality.
• The employees are promoted after a very long time that causes a distress among employees.
• Many branches still practice their daily transaction by book, which makes banking laborious and time consuming.
• Record keeping is poorly practiced.
Opportunities:
• ZTBL has a great potential to serve general banking.
• Deposit system introduction can generate funds for the bank.
• By making investment in new areas.
• Senior employees’ compliance with coordinators can enhance their working abilities.
• By developing technical education, the bank can increase its progress.
Threats:
• Book keeping is proven to be a greater threat for ZTBL as there is danger of record loss.
• There is no availability of online record which can produces confusions among loonies.
• Although the recovery ratio is round about 85% but it is only window dressing and not the actual one.
• There is no maintenance of duties by the staff.
• Their interest ratio is round about 9% per annum, which is very low from other commercial banks.
ORGANIZATIONAL CHART OF
OPERATIONS DIVISION
AIM OF OPERATIONS DIVISIONS
To ensure efficient and sound operations of the field organization of the bank, dissemination of agricultural technologies, make better provision for affording efficient banking facilities, develop liability products.
OBJECTIVES OF OPERATIONS
DIVISION
1. Develop viable business products / services and achieve business targets.
2. Develop the business plans for the bank.
3. Enable farmers to enhance the agricultural productivity by mechanization.
4. Improve field operations and control system. 5. Control and monitor field activities.
FUNCTIONS OF OPERATIONS
DIVISION
1 .Develop and market new products / services, evaluate current product / services to maintain and enhance competitive edge on Bank products. 2. Allocate deposit targets to zonal offices and its monitoring.
3. Support business development.
4. Analyzing and identification of weak areas. 5. Development of field expansion program.
6. Evaluation of the performance of branches and zones.
7. Carry out test and trial, of new viable agricultural technologies. 8. Dissemination of technical agriculture knowledge.
LARGE BRANCH SETUP
LOAN PORTFOLIO: ABOVE 700
MILLION RUPEES
MEDIUM BRANCH SETUP
LOAN PORTFOLIO: 3OO TO 700
MILLION RUPEES
MARKETING STRATEGY OF
ZTBL:
ZTBL LAUNCHES CARBON CREDIT SCHEME:
Islamabad
—The Zarai Taraqiati Bank Limited (ZTBL) has launched a pro-active strategy to adopt all the economically viable technologies feasible for Pakistan to mitigate the effects of climate change. According to ZTBL press release, the proactive strategy has been formulated to capitalize the great business opportunity in trading carbon credit and solution to the problems of climate change, habitat loss rural poverty. The bank has made an agreement with CDBPAK, as consultants to quantify and capitalize carbon credits for ZTBL Carbon Credit, it added. It said that in view of changing climate patterns the agriculture sector was undergoing phenomenal changes including water scarcity, temperature variations, low soil fertility, increasing population, decreasing farm sizes and require a paradigm shift in the approach towards the agricultureThe target clients of the ZTBL are farmers, who need to be apprised about using cheap and renewable sources of energy as well as water conservation techniques to reduce carbon emission and at the same time enhancing the agriculture productivity at their end, it added. Realizing the challenges of the global climate changes in the 21st century ZTBL has emerged as a pioneer in the
sector, the press release said adding that it has assumed the role of a green bank by adopting an environment friendly approach Agencies.
GIVING LOANS ON EASY TERMS:
Bahawalpur
: On the special directives of President Asif Ali Zardari, Zari Taraqiati Bank Limited (ZTBL) is giving loans to farmers on easy terms and conditions so that enhanced production of agricultural crops could be achieved. This was stated by President ZTBL Ch. Zaka Ashraf while talking to APP here. He said under a special package, ZTBL provides 90% investment to the growersAnd all out efforts are being made to make them self-reliant and bring prosperity to the country. Ch. Zaka Ashraf told that 10,000 tractors have been provided to the farmers while 20,000 more tractors will be given to growers under Benazir Tractor scheme, adding loans will also be given to the growers under the scheme.
President ZTBL said that loans worth Rs. 72 billion will be given to the farmers while solid steps are also being taken for the recovery of Rs. 75 billion from the defaulters. He said, the government wanted to bring green revolution in the country. Latest methods are being introduced and utilized to achieve the target, he added.
CAREER FOR MANAGEMEN TTRAINEE OFFICERS
:
ZTBL has the pride of being the largest Financial Institution in the rural sector of the country. The Bank continues to operate as premier Financial Institution catering to the credit needs of agriculturists for the development and modernization of agriculture as well as promoting Cottage Industries in rural areas. So we are looking for committed & enthusiastic individuals to fill the positions of MTOs for operations of the Bank in Finance and Accounts. Fresh MBAs or maximum one years experience may also apply.One of the marketing strategies of Zarai Taraqiati Bank Limited is the increasing flow of rural credit. As we know that the agriculture is the crucial contributor to the national economy:
• Contributes a quarter to GDP.
• Employs 47% labor force.
• Over 50% of industrial production comes from agro business.
• Earns (directly or indirectly) 70% of export revenue.
• Provides livelihood to 67% rural households.
• Vast Majority of poor live in rural areas (nearly 80% of all poor live in rural areas).
• Poor are mainly dependent on agriculture for their food and livelihood security Livestock is an important of livelihood for the poor.
Agricultural growth contributes most to poverty reduction.
• Through forward and backward linkages, agriculture. Contributes to rural economy (farm and non farm) and creates livelihood for poor in the non-farm sector.
The main source of agricultural growth includes:
• Dates, Mangoes, Citrus and Potatoes are high value potential horticultural crops.
• Floriculture is fast growing sub sector, influencing domestic as well as export markets.
• Remunerative opportunities exist for entrepreneurs in agri-business identified high return agri-businesses include:
•
Milk collection and chilling.
•
Cut flowers.
•
Fruit processing.
Accelerated growth of agriculture, especially of high value agricultural activities, will continue to be cornerstone of Government overall strategy to reduce poverty. ZTBL and micro-finance institutions; need to increase flow of rural credit.
• During 2005-06 ZTBL disbursed Rs48 billion credits and total credit 137 billion, meeting less than one third of the total demand for Credit.
• Cumbersome legal process and lack of political will creates problem for loan recovery.
• Access to credit remains limited and restrictive by lengthy processes and smallholders are generally left out. But in ZTBL the process is too shortened and easily accessible that all the smallholders are entertained.
MARKETING STRATEGIES OF ZTBL:
There are a number of marketing strategies of Zarai Taraqiati Bank Limited some of these strategies are listed below;
Crop Insurance:
The Benazir Credit Card Schemes and Crop Loan Insurance Schemes have also been introduced for the benefit of cotton, rice and other crops growers. Crop insurance Schemes have been considered an impractical dream by the insurance sector for quite long, but innovative solutions designed by National Insurance have made it a practical option. NICL and
than Rs.30 billion have been provided insurance cover. Similarly, ZTBL has also been provided the facility of Agri Insurance Cover.
Tractor Scheme:
The Tractor Scheme was launched to provide tractors to the farmers at a subsidized price. A large number of tractors are to be distributed amongst the farmers on very low interest rates. The ZTBL is supplying high efficiency irrigation system to farmers to improve agricultural activity in areas of scarce water. ZTBL provides tractor to farmers that have 10 acres agricultural land. The recovery of loan is on easy terms. The farmers have to pay back the loan in 8 years. The installment is semiannually
Which is round about 50,000 rupees? In this way the farmers can easily pay back the amount.
Availability of Quality Seeds:
ZTBL decided to ensure the supply of quality seed, one of the most important inputs in crop production, to have maximum yields in all crops. As a result, production of almost all major crops, including wheat, rice, maize, gram, moong and pearl millet, rose significantly. A special project of improving vegetables seeds at local level has also been initiated.
Agricultural Loans:
During 2008-2009, the Government earmarked Rs.250 billion, higher by 20% over the preceding year, for banks to finance the farming community. This amount for the current fiscal is Rs.260 billion for major and minor crops, orchards and forestry. Credit limit was increased because of rising prices of all inputs including electricity. Crop loan insurance scheme was also introduced to enhance the access of farmers to agricultural loans. Provision of agricultural credit to farmers facilitated them to procure the costly inputs in order to ensure the target planting and production of various crops. A new Agriculture Mode Village Program has been initiated in 26 villages under the auspices of Zarai Taraqiati Bank Limited
(ZTBL). The objective is to organize the farming community at the village level ensuring farmers easy access to agri credit.
ZTBL and Field Work:
One of the main marketing strategies of Zarai Taraqiati Bank Limited is the field work. Through which the ZTBL officers visit the agricultural land and meet the people, in this way they are able to know about the forming land and also about the people. And the people too became conversant with the officers and in this way they are able to know about the lending schemes. ZTBL is also promoting hajj and umrah schemes.
BUSINESS PROCESS ANALYSIS:
ZTBL AND ENHANCEMENT OF CROP PRODUCTIVITY:
The economy of Pakistan is predominately agrarian in character. Despite progress in other sectors the agriculture sector is contributing about 25% towards the GDP. About 67.5% of the total population lives in rural areas and the agriculture is main source for their livelihood. About 44% of the labor force is engaged in agriculture sector and about 70% of the direct and indirect income is generated from this sector.
The agriculture sector is multi-segmental. Majority of our farm community comprised of subsistence farmers who are not in a position to use high quality seeds, sufficient fertilizers and improved farm implements due To the lack of finances available to them. Lack of finance is one of the main reasons for low per acre productivity in our agriculture. The matter of enhancing agricultural productivity therefore largely depends on the availability of finance and credit facility available to the farmers in their respective areas (ADBL, 1996). Every modern business is operated on capital or borrowed capital. Similarly, farming also requires capital. The need for farm credit in increasing production and
requires liquid capital for financing harvesting, haulage of produce and other similar farm operation (ADBP, 1996).
In Pakistan there are two major sources of agricultural credit, non-institutional and institutional sources. The non-institutional credit suppliers include friends; neighbors and professional moneylenders are the main source of credit in the country. Institutional sources comprise of cooperative banks, Zarai Taraqiati Bank Ltd. (ZTBL), nationalized and privatized commercial banks and Taccavi credits (ADBP, 1996). Zarai Taraqiati Bank Ltd. (ZTBL) consolidated and intensified its operation to play an effective role in financing of farm investments to modernize agriculture, increase farm production and raise farm income. The bank continued to push forward the on-going programmes and projects relating to provision of credit and technology to targets groups covering landless, subsistence, small farmers and rural women through its credit programmed (Government of Pakistan, 2001).
The objectives of the study were as under:
• Analyze the utilization of credit by small farmers in the study area,
• Compare the effects of utilization of credit on crop production and income of beneficiaries without credit and with credit.
• Suggest measures as to how the present credit scheme can further be improved.
The present study was conducted to examine the utilization and effects of short-term credit from Zarai Taraqiati Bank Ltd. (ZTBL) at Tehsil Kabul area of district Swat in August 2003. Eighty respondents were selected in which forty were the beneficiaries of ZTBL and the remaining forty were the non-beneficiaries selected from the same area. Paired sample t-test was used to compare the production and income of the beneficiaries without credit and with credit. Independent sample t-test was used to compare the production and income of beneficiaries with non-beneficiaries. On overall basis beneficiaries’ farmer utilized 78.84% of the amount of credit for the purpose it was received. While the remaining amount i.e. 21.15% was mis-utilized. Per
were 170.4 maunds (1 maund equal to 50kg), 24.6 maunds, 39.4 maunds and 152.4 maunds, respectively. In case of beneficiaries without credit it was 139.6 maunds, 18.93 maunds, 30.3 maunds and 130.7 maunds, respectively on per acre basis. While in case of non-beneficiaries it was 144.5 mounds, 19.25 maunds, 32.2 maunds and 135.3 maunds, respectively on per acre basis. Net return of beneficiaries with credit for tomato, wheat, maize and onion was Rs.17410.9, Rs. 3908.67, Rs. 7695.75, and Rs. 16450.5, respectively on per acre basis. While beneficiaries without credit it was Rs. 11863.21, Rs. 2195.54, Rs. 5981.17, and Rs. 10968.9, respectively on per acre basis. In case of non-beneficiaries it was Rs. 13616.85, Rs. 2830.15, Rs. 6600.88, and Rs. 13465, respectively on per acre basis.
ZTBL AND BUSINESS SCHEMES:
ZTBL (Zarai Taraqiati Bank Ltd) formely known as Agriculture Development Bank of Pakistan has been struggling since the last couple of decades to optimize its operational efficiency. There has been tremendous pressure both by the State
Bank of Pakistan and BOD to design and implement an effective Enterprise Resource Planning (ERP) system using Information Communication Technology to enhance Regulatory Compliance, offer better KPI monitoring and improved real time Management Information System enabling the Bank to launch new ICT based schemes/products for farmers and HR Performance Management System..
After a considerable lapse of time; ZTBL has experienced in the last two years a most productive growth. The executive management has managed to successfully convert the highly demoralized non-productive HR workforce into productivity mode. Through the newly revamped productive HR workforce the Bank has posted an overall 1.6 billion rupees in profits..
The Information Systems Division has been reorganized and revamped through the induction of highly skilled and seasoned human resource and has enabled the bank to do on-line loan processing using the bank’s own newly established Wide Area Network (WAN). The efforts of the ISD development team towards the
has resulted in effectively conserving more than twenty years of continuous business processes improvements of investment.
Through the successful modification in the architecture of the existing legacy system; ISD has enabled the field offices to run real-time online processing jobs centrally running on the servers at Head Office Data center.
This improvement now offers the entire portfolio of products and services to the branch offices. The Branch staff can now entertain loan processing application, recovery and/or release of installments under products like regular loan, Sada Bahar, White revolution etc on the terminals in the branches.
This radical new development in the Bank’s ICT infrastructure has offered tremendous operational efficiency. For example in the past the Branch office staff conducted business manually and then hardcopies of the transaction data was manually fed into the system on a weekly basis at the zonal offices.
Upon completion of the data entry of all branch offices within a zone was completed, the Zonal office would then dispatch the consolidated data on tape cartridges through courier services to the head office. Due to this process; at
Times considerable delays were experienced by the Bank for the compilation of consolidated nationwide bank position.
There had been numerous monitoring, reporting and performance management issues just because of the fact that HO was not able to have complete digitized record of business transactions. The newly revamped Centralized loan processing system would now enable the bank to improve the operational efficiency tenfold with an overall reduction of operational expenses.
The Bank has selected ORACLE ERP in order to revamp the entire BackOffice operations. In this regard, ORACLE University is currently conducting a two and half months long rigorous training program for more than 120 bankers.
In order to fulfill State Bank regulatory compliance with reference to the maintenance of NADRA verified client records; ISD has successfully conceived,
designed and developed an integrated end to end loan processing system by mapping the ZTBL loan processing system to NADRA data base with a further integration to the State Bank of Pakistan’s eCIB database.
Also the Loan processing system, Deposit Management system, NADRA verification and Customer Credit worthiness are all seamlessly integrated together. Since a few months ago, Data Cleansing in conformity to SBP and ZTBL business procedure was conceived as difficult, if not impossible as the entire physical record was available in the branches and there was no interface even at Zonal offices to verify physical record with computerized loan processing system, NADRA and SBP-CIB system.
ISD has also designed, developed and implemented Deposit Management System at Branches as an extension of loan processing system. Most modern database management system is being used to digitize the existing semi manual deposit management system.
DMS has been designed to allow the bankers to post transaction themselves by using most modern concepts like photo and signature verification on the screen. With the deployment of the new system; all records would now be verified by NADRA, checked for credit worthiness from the State Bank.
It has been planned that by the end of June, 2008, more than 250 branches would be equipped with necessary hardware with preinstall DMS and NADRA verified clients from on-line processing system.
EUROPEAN UNION AND ZTBL:
ZTBL was poised to serve the technical needs of the entire community. The Bank took lead in serving over 0.5 million farmers and hoped to extend its outreach to strengthen the agriculture sector. It was said by president ZTBL, MUHAMMAD
development of agriculture sector and alleviate rural poverty. This would have lasting impact in modernizing and boosting agriculture sector for the country. The president said that through its countrywide network the ZTBL being the largest financial institution has achieved the highest landmarks of performance during the last two years as it increased its disbursements from Rs.56 Billion to Rs.77 Billion, recovered Rs.73.8, and earned Rs4.6 Billion profit before tax. This has given financial strength and viability to the bank. He further appraised that code of corporate governance and control system has also been implemented.
CHINESE FIRM AND ZTBL:
China would introduce alternate energy technology for agriculture development in Pakistan that would facilitate the farmers to meet their energy needs through alternate resources in cost effective manner. Most recently ATBL has inked an agreement with Chinese firm Ms Xi` an Hong Yuan equipment in Islamabad. Under the agreement, the company will bring equipments for demonstration at their own cost and expanse. They will make demonstration of their own
Equipment to introduce new technologies and make available for the forming sector. On successful demonstration the product will be marketed through kissan support services. Speaking on the occasion, the president ZTBL Ch Muhammad Zaka Ashraf expressed the hope that the agreements would a long way in promoting the agriculture in the country besides benefiting the farmers.
COMPETETIVE STRATEGY OF ZTBL
COMPETETIVE STRATEGY:
The strategy by which the organizations producing same or substitute products compete with each other. The fourth specialized government-owned bank, Zarai
transform ZTBL. The most important unresolved issue is its excessive debt liabilities as well as shareholding pattern. SBP has proposed that the Government should pave the way for its eventual privatization, considered to be critical for augmenting its scale and efficiency.
Agricultural Credit:
Credit requirements of the farming sector have been increasing over the years mainly due to the rise in the use of fertilizer, pesticides and mechanization. In order to cope with the Agriculture increasing demand for agricultural credit, institutional credit to farmers is being provided through Zarai Taraqiati Bank Limited (ZTBL), Commercial Banks, Punjab Provincial Cooperative Bank Ltd (PPCBL) and Domestic Private Banks. The Government has allocated Rs 160 billion for agriculture credit disbursements for the year 2006-07 which is 23.1 percent higher than the allocation of the preceding year i.e. Rs 130 billion. The allocations, however, are totally voluntary and indicative in nature as the mandatory allocations policy has been totally phased out and the allocations for commercial banks have also been made indicative. The elimination of mandatory credit allocations coupled with active involvement of commercial banks in agricultural finance is major milestone achieved towards mainstreaming of
Agricultural finance in the country’s financial system. The flow of necessary funding to the sector will now be ensured through conducive policy and regulatory environment, policy advocacy and promotional initiatives and monitoring of agri-disbursements and portfolio build-up plans. Out of the total
Credit target of Rs 160 billion, Rs 80 billion were allocated to commercial banks, Rs 48 billion to ZTBL, Rs 9 billion to Punjab Provincial Cooperative Bank Ltd., and Rs 23 billion to Domestic Private Commercial Banks. The agricultural loans extended to the farming community during July-March, 2006-07 are discussed below:
Agricultural loans amounting to Rs. 104.8 billion were disbursed during (July-March, 2006-07) as against Rs.91.2 billion during the corresponding period last year, thereby registering an increase of 15 percent. The share of ZTBL in supply of total agricultural credit by institutions increased and was 32.9 percent during (July–March, 2006-07) while it was 31.8 percent during the same period last year. However, the share of Commercial Banks has surpassed the share of ZTBL; it was 46.8 percent of the total agricultural credit disbursed during July– March 2006-07. While the share of PPCBL has also slightly increased as it stood at 5 percent in supply of total agricultural credit by institutions. The share of domestic private bank has increased; it was 15.3 percent as compared with 12 percent in the corresponding period of last year. Supply of agricultural credit by various
b)
Loan under One Window Operation:
ZTBL has launched a one-window operation to enhance credit facilities particularly to small farmers. This will facilitate to cater for purchase for inputs during peak sowing season of both Rabi and Kharif Crops with the collaboration of Provincial Governments, Revenue Officials and Postal Authorities. Agriculture Pass books are issued at the spot to intending new borrowers. Their land record is entered and loans are sanctioned at focal points whereas payments are released on the very next day from the concerned branch. During July-March, 2006-07, an amount of Rs 9.069 billion has been disbursed under this scheme.
c)
Revolving Finance Scheme/Sada Bahar
Scheme:
For providing timely input loans for crops and working capital for dairy, poultry and fisheries, the ZTBL launched Sada Bahar Scheme (SBS). Under this scheme credit requirements for inputs for the whole year is assessed and made available to the borrower. The Managers are authorized to sanction loan up to
(SBS) as against Rs. 24.149 billion disbursed during corresponding period of last year, indicating an increase of 28 percent.
d)
Credit to Women Program:
The major objective of this programme of ZTBL is to make credit more accessible to rural women through Female Mobile Credit Officers (FMCOs). Under Credit to Women Program, women can meet their credit needs through both Micro Credit & General Credit Scheme. Presently, 17 FMCOs are exclusively looking after credit needs of women in 17 branches of the Bank, whereas female borrowers may also obtain loan through male MCOs throughout the country. During (July– March, 2006-07) loans of Rs. 99.572 million have been disbursed under this programme.
e)
Micro Credit Scheme:
Under the Micro Credit Scheme of the ZTBL, all the Mobile Credit Officer working in the branches process micro credit cases both for men and women to engage rural poor in income generating activities/cottages industries. Financing under this program is provided for 136 loanable items. All loans are recovered within 18 months of their advancement.
f)
Crop Maximization Project:
In order to augment the efforts of the Government to enhance productivity on sustainable basis, Ministry of Food, Agriculture and Livestock (MINFAL) and Zarai Taraqiati Bank Limited (ZTBL) have launched, “Crop Maximization Project”. The project aims at assisting the farmers to increase agriculture production. A total of 109 villages are being covered under this project. In the project villages, Village Organization (VOs) have been established which organize the farmers
