Agriculture NPLs surge by 11pc

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STAFF REPORT IBD: Non-Performing Loans (NPLs) of agricultural financing posted a surge of 11 per cent to Rs 32 billion as on December 31, 2011, reportedly, due to post-flood effects and high cost of production.
“Despite healthy growth in the agricultural sector followed by bumper crop of cotton and sugarcane, NPLs of agricultural sector are on rise,” sources told this scribe.
According to State Bank of Pakistan’s statistics, NPLs of agricultural financing have registered a pronominal increase of 11.11 per cent during the last calendar year 2011 (CY11).
With the current increase, overall NPLs in agricultural financing have mounted to Rs 32 end of CY11 as compared to Rs 28.8 billion in CY10, depicting an increase of Rs 3.2 billion.
Largest specialised institution – ZTBL – has major share in the overall NPLs of agricultural financing. With an increase of Rs 3.3 billion, overall NPLs of ZBTL have reached Rs 19.2 billion as on December 31, 2011 from Rs 15.9 billion as on December 31, 2010.
During the under review overall outstanding loans of these five banks have surged to Rs 65.2 billion in CY11 from Rs 54.4 billion in CY10.


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