ISLAMABAD: (March 13 2004) Zarai Taraqiati Bank Limited (ZTBL) disbursed around Rs30 billion among the country’s farming community during the calendar year 2003, as against Rs29 billion disbursed in 2002, showing Rs one billion growth.

While on the recovery side, the bank collected a record Rs37 billion during the year ended December 30, 2003, showing a significant increase when compared with around Rs34 billion recovered during the previous year.

This performance shows that ZTBL’s restructuring plan, started one and half years back in a bid to revamp its operations, has started showing visible change in the Bank’s institutional capacity and efficacy, ZTBL President, Istaqbal Mehdi told APP here on Friday. Istaqbal Mehdi said that implementation on the restructuring plan has started yielding positive impact on the performance of bank, enabling it to enhance lending capacity.

An improvement in the liquidity owing to good rate of recovery has also enabled the bank to expand its scope of operation.

ZTBL president said, "as our financial position has improved so we want more people and borrowers for disbursement of money for enhancing their productivity in the agriculture sector".

"We are paying special attention on fulfilment of small farmers’ requirements as they deserve most and their recovery rate is also good", he added.

The bank had reduced the mark up rate from 14per cent to 11 percent in accordance with the government’s policy to provide maximum benefit to farmers and to inculcate timely repayment behaviour, he added.

To a question, Istaqbal Mehdi said, the bank was considering to further slash the mark up for good borrowers. He said the bank’s efficiency would greatly improve following the full implementation of the plan by 2005.

Besides, he said, the bank is launching a scheme for recruitment of qualified work force particularly MCOs to reinforce credit delivery and recovery mechanism.

The induction of around 100 MCOs will be on merit through a competitive examination to be conducted by a renowned university, he said, adding, the fresh induction would besides incurring the outreach will also aid in changing the culture in the bank.

ZTBL president said, in order to ensure efficiency and transparency in loan disbursement and recovery, the bank would shortly launch a tripartite control system, primarily in 12 regions.

Under this system, every region would have a regional manager office, an audit department and a complaint and investigation office, which would send monthly updates regarding their respective affairs to the head office, he added.

Istaqbal Mehdi said, this tripartite control system will have a better check on the regions, besides, facilitating borrowers and customers in redressal of their complaints at the regional level.

ZTBL president said, as the bank had ample liquidity, we are now focussing on new borrowers, with the availability of micro-credit to small farmers, soft term loans for agricultural machinery like tractors and tube-wells, timely credit availability for tillers and farmers at the time of sowing and continuation of credit through revolving scheme.

The News International, Pakistan