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ZARAI TARAQIATI BANK LIMITED
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Executive Summary
Banking is one of the most sensitive businesses all over the world. Banks play very important
role in the economy of every country all over the world and Pakistan is no exemption. This
report is about one of the leading Agriculture Bank of the Pakistan known as Zarai Taraqiati
Bank Limited. ZTBL is playing its one of the most important role in the development of the
Agriculture Sector of the Pakistan. On 14th December 2002, under the ordinance of the
Agricultural Development of the Pakistan 1961, ZTBL was incorporated as Public Limited
Company. This Bank severs its venerated customers in the form of different customized
products. It is providing both type of severs financial and non-financials mostly to its clients of
the rural areas of the Pakistan, which comprises of 68% of the Pakistan’s total population. The
Bank has country-wide network in the form of 349 branches and is severing round about half of
the million clients annually and over accumulated account holder’s with the average loan size of
around Rs.89, 000 serving 65%, 31% & 4% of subsistence, economic and large growers
respectively.
INTRODUCTION
History of the Bank
Pakistan is one of the agricultural country, about 75% of its population is directly or indirectly
associated with agriculture. Due to its widespread and extensive canal system, its land is very
fertile. The Agricultural Development Finance Corporation was setuped in 1951, keeping in view
the need of finance to rapid development of agriculture sectored. It also provides financial
facilities for the development and modernization of agriculture, including forestry, fisher, animal
husbandry, poultry and dairy farming.
Under the Agricultural Development Bank Act, the Agriculture Development Bank of Pakistan
came in being in September 1957. Under this Bank, the agriculturists, co-operation societies and
others were provided the facilities of credit in cash, warehousing and storage. Agricultural
Development Finance Corporation and the Agricultural Development Bank were similar in
function and government provides capital to both of them. later On February 18, 1961, due to
their similar functions these both came under the single banner of Agricultural Development
Bank of Pakistan.
Agricultural Development Bank of Pakistan (ADBP)
Under the ADB Ordinance 1961, the Agricultural Development Bank of Pakistan (ADBP) was
established originally. Then, ADBP was reorganized into a public limited company, with the
purpose of ensuring better governance and the provision of high quality financial services to its
rural clientele. Then all assets, business, contracts and liabilities of ADBP were taken by the
Zarai Taraqiati Bank Limited (ZTBL and on December 14, 2002 and started its countrywide
operations as a public limited banking company.
The ADBP had than become the single largest institution in the country catering to be viable
credit need of the agriculturists and in disbursing over Rs. 5000 million per annum for the
development and modernization of agriculture.
Conversion of ADBP into ZTBL
Agriculture Development Bank of Pakistan (ADBP) was converted into Zarai Taraqiati Bank Ltd
(ZTBL) by the Federal Government and it started its operations with profound effect. It was
restructured accompanied with new board of directors and was titled as public limited company.
Its aim under the presidential ordinance was to ensure 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 return to the stake holder. In 1984
Zarai Taraqiati Bank (ZTBL) under the company’s ordinance was registered with SECP as a
public limited and by virtue of finance order, all assets, liabilities proceeding undertaking of the
ADBP stands transferred to and vested in Zarai Taraqiati Bank with effect from December 14,
2002.
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. As part of the overall organizational revamping strategy, the bank has taken several
initiatives to enhance its lending activities while adopting a prudent approach with regards to
credit quality.
Vision Statement
Emerge as a Leader in provision of agriculture credit by promoting and sustaining productivity
through a market/agribusiness focus. To bridge yield gaps of all agriculture commodities and to
ensure that the welfare of farming population is radically improved and the environment is
protected from harmful human interventions.
Mission Statement
To become a leader in guiding entrepreneurs & farmers implement an agribusiness and
marketing led approach that brings strong commercial orientation in production catering
domestic and international markets. As a specialized agriculture development bank, deliver
pragmatic technology and optimal solutions to farm communities and rural areas across all agro-
ecological zones with sensitivity to economic growth and equity. Develop close partnership and
linkages with all its clients to dramatically transform, restructure and revamp the agriculture
scene and enhance its outreach by investing wisely and judiciously in new approaches, ideas and
means of mass communication.
Nature of Business
Zarai Tarqiati Bank is to provide credit facilities to the farmers, including hiring and renting of
any thing which it may advance way of loan and the provision for ware hosing facilities of such
terms and subject to such conditions as may be prescribed by its rule to agriculturists for the
purpose of agriculture and to persons engaged in cottage industries in rural areas and provide
sustainable rural financing services, particularly to small farmers.
Types of loans
Banks provides loans through various products/schemes for short, medium and long term
depending on the cash flow of the borrowers.
The bank gives special focus and importance to fulfill the genuine and real needs of the small
farmers in terms of production loans (seed, fertilizers, pesticides, POL, labor charges etc) as well
as for working capital purpose. These loans are provided to the needy farmers in cash and kind
under various schemes like Sada Bahar, Awami Zarai, General Credit and One Window
Operations Zarakhazi Schemes.
The bank also provides Development loans to farming community like tractors, allied agri-
equipments/implements, besides loans for poultry and livestock, fisheries, orchards, plantation,
and irrigation schemes etc.