Zarai Taraqiati Bank Limited

Agricultural Development Bank of

Pakistan

Headquarter: Islamabad, Pakistan

Date of creation: 1961

Type of institution: Agricultural development bank under banking
law
Ownership:
Government
owned,
provincial
governments
(Government of Erstwhile East
Pakistan, Government of Punjab, Government of Sindh, Government
of N.W.F:P., Government of Baluchistan), State Bank of Pakistan as of
June 2000 (rounded figures)
Number of branches

346

Number of staff

7,782

Number of savers

0.7m

Number of loan clients

0.8m

Total assets (in US$; 1US$ = 52 Rs.)

1.5bn

Total outstanding net loan balance (US$)

470m

% of loan portfolio allocated to the agricultural 88%

sector
Main activities and products
The Agricultural Development Bank of Pakistan is the country's
premier and largest financial development institution providing
financial and technological services to farmers for the modernisation
of agriculture and for the establishment of cottage industries (nonfarm loans for micro-enterprises) and agri-business in rural areas. It
provides short-term production loans (inputs), medium-term loans
for agricultural implements, transport, dairy and poultry farming,
reclamation of land and long-term loans for irrigation, purchase of
farm machinery (tractors), construction of grain & cold storage etc.
Main sources of funds
Central Bank funds
Publications
Annual Report (audited)
Agri.Digest
ADBP Outlook
AGRO Banker (House Journal)

Zarai Taraqiati Bank Limited

Zarai Taraqiati Bank Limited

CORPORATE VISION
Perform as financially and operationally sustainable Key
Rural Finance Institution (R.F.I) of Pakistan with focus on
rural and agricultural financial services.

CORPORATE MISSION

Provide affordable and accessible rural financial services

to all income level clients of rural and agri. sector with
special emphasis on poverty reduction...

Zarai Taraqiati Bank Limited

ZTBL Objective

Restructuring plan under RFSDP

To operate on commercial lines to expand its outreach, the
Bank is under going a process of organizational, financial and
functional restructuring

ZTBL HR Strategy

Bank to look at activities it performs and attach economic

value to undertake the activity commercially.
Ensure the Banks financial and human capital is rightly
deployed
As strategy Bank should use excessively outsource as
medium to add flexibility to its use of Human Resource
To ensure that non-business/support function have just the
right staff complement

INTRODUCTION

Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural

Development Bank of Pakistan (ADBP) is the premier financial
institution geared towards the development of agriculture sector
through provision of financial services and technical know how. The
restructuring of former ADBP is being carried out with the aim to
uplift the agriculture and rural sector by raising farm productivity,
streamlining the institutional credit and increasing income
generating capacity of the farming community. ZTBL was
incorporated as a Public Limited Company on 14th December, 2002
through repeal of ADB Ordinance of 1961.
The new corporate structure redefines the bank's status as a public
limited company registered under companies Ordinance'1984 with
an independent Board of Directors which aims at ensuring good
governance,
autonomy,
delivering
high
quality
ZTBL is a key R.F.I of Pakistan providing affordable, rural and
agriculture financial/non-financial services to the rural Pakistan,
comprising 68 % of the total population. The Bank through a
country-wide network of 341 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 serving 65%,
31% & 4 % of subsistence, economic and large growers respectively.
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 was incorporated as a Public Limited Company on 14th
December, 2002 through repeal of formal Agricultural Development
Bank of Pakistan Ordinance of 1961. Thereby transforming the bank
as a corporate entity to serve as a R. F.I

Corporate Objectives

Develop and operate as a financially and operationally

sustainable R.F.I of the country.
3

Zarai Taraqiati Bank Limited

Assist rural community, particularly the small farmers, in

raising their productivity and income levels through timely
delivery of credit, advisory and subsidiary services.
Build ZTBL's image as a proactive, client friendly, financially &
operationally
sustainable
with
indigenous
product
deployment.
Establish and provide backward and forward linkages to
strengthen agri. value added commodity chains.
Engage in public - private and wholesale - retail partnership to
deepen outreach and reduce operating cost.
To function as a rural commercial bank to mobilize rural capital
formation and to commercialize the agri. sector by delivering
the true value of credit to the client. Provide a wide range of
risk insurance products to its clients.
Open up it 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
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 macro economic
stability. The ongoing corporatize restructuring lays the basis for
fundamental reforms for rural finance market development.
The recurring financial drain, pursuing the old rural finance
paradigm and the narrowing fiscal space have also promoted a shift
in Government strategy that now seeks viable intermediaries for
enhancing outreach.
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;
1. Governance: establish an environment that facilitates good
governance and accountability;
2. Systems: modernize operations through use of technology,
networking, and communication tools;

Zarai Taraqiati Bank Limited

3. Business processes: streamline products and delivery

systems so as to reduce transaction costs, simplify operations,
and increase outreach;
4. Products and services: introduce products and services that
are financially economically viable;
5. Human resource development: improve standards and
skills of management and staff and strengthen training
capacity; and
6. IT: 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, aiming
to outreach annual rural clientele to 600,000 by the end of year
2008. 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.

Zarai Taraqiati Bank Limited

ZTBL AT A GLANCE
ZTBL the successor of ADBP was incorporated as a public limited
company in October, 2002
Number Of Branches|:
342
Number Of Zones:
25
TOTAL EMPLOYEES (Excl.
5,326
Service Providers):
Equity :
Rs.13.6 Billions
Deposits:
Rs. 2.9 Billions
Sbp Debts:
RS. 51.3 Billions
Outstanding Loan
Rs. 75 Billions
Portfolio:
Number Of Borrowers :
443,874
Mark-Up Rate:
Overall Loan Disbursement:

9% with 1% rebate on timely

repayment
Rs. 440 billion (since inception unto Apr.
2007)

Tractors Financed:
Number
Amount

482,000
Rs. 82 billions

Tube Wells Financed:

Number
Amount

143,000
Rs.15 billions

Loans For Small Dairy

Farms :
Number

Rs.23 billion
516,000

Zarai Taraqiati Bank Limited

PRODUCT AND FACILITIES

1.
2.
3.
4.
5.
6.
7.
8.

ZTBL Locker Facility

Life Time Locker Facility
Zarkhaiz (One Window Operation)
White Revolution Scheme
Sairab Pakistan Scheme
Sada Bahar Scheme
Tea Financing Scheme
Crop Maximization Project

1. 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:-

Sr.
No
1
2
4
5
6
7
8
9
10
11

Name of
Branch

Phone
No.

Islamabad
Branch
Main
Branch
Lahore
Gujranwala
Branch
Faisalabad
Branch
Multan Branch

0519252022
0427353380
0559200206
0419210008
0619200509
Sahiwal Branch
0409200424
Sargodha Branch 0489230491
Khan Pur Branch 0685573079
Shafi
Court 021Branch
9206006
Main
Branch 021Gulshan-e-Johar
4613618

Address
Block-7/F, ZTBL Officer Colony G7/2, Islamabad
47-C,
Sharah-e-Quaid-e-Azam,
Lahore
D.C Road, Gujranwala
Opposite Punjab Medical College,
Faisalabad
61-A Abdali Road, Multan
915-D Block Farid Town Sahiwal
Katchery Road, Sargodha
Model Town- Near Paradise Cinema
Khan Pur
Shafi Court Building Mereweather
Road Karachi South
St 4/3-A Building No.1 KDA Scheme36 Gulistan- i -Jauhar Karachi

Zarai Taraqiati Bank Limited

Following are the approved rates for rent of lockers and key deposits
against which lockers will be allocated:
Rent Per
Rent After Grace
Key
Type
Specification
Annum
Period
Deposit
Small
6-1/2"x4Rs.1,200/Rs.1,500/Rs. 5,000/1/2"x23"
Mediu 13-1/2"x4Rs.1,800/Rs.2,250/Rs.
m
1/2"x23"
10,000/Large
13-1/2"x8Rs.2,500/Rs.3,125/Rs.
1/2"x23"
15,000/2. 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.
Supervised agriculture credit scheme
Under this scheme agriculture loans are given for short, medium
and long term loans upto Rs.1.00 million per borrower/per case. The
loans are sanctioned for In Fats, livestock, orchard, tractor,
agricultural machinery, tubewell and irrigation facilities etc. under
the scheme besides provision of credit, information are to the
farmers for planning the farm, production, guidance for
implementation of the scheme, marketing and repayment of loans.

3.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. All
the related departments i.e. Revenue, Agriculture, Post Office etc.
attend the focal points, established at convenient places. The
farmers get their pass books prepared and loan 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.

4.White Revolution Scheme

PDDC (Pakistan Dairy Development Company) shall recommend
good dairy farmer to ZTBL and send the loan request to the bank
along with necessary documents. Initially the scheme will be for
modernization of 5,000 farm during 5 years period. The
modernization of dairy farm will be carried out through financing
milk cooling tank, generator, voltage stabilizer, hot water gezer,
water pump, cooling pad and other dairy equipment. . . .
1. In order to modernize the dairy farming for increasing milk
supply and mitigate poverty in the country and improving the
living standards of the rural inhabitants, a strategic

Zarai Taraqiati Bank Limited

partnership between ZTBL and M/s. Pakistan Dairy

Development Company has been agreed upon and an
agreement in this regard has been signed on 6th June, 2007.
The salient features of this strategic partnership is given here
as under:
The Company shall recommend good dairy farmer to
ZTBL and send the loan request to the bank along with
necessary documents.
The concerned branch of the bank will process the case
as per prescribed procedure of the bank.
The modernization of dairy farm will be carried out
through financing milk cooling tank, generator, voltage
stabilizer, hot water gezer, water pump, cooling pad and
other dairy equipment. The loan will be considered
against securities acceptable to the bank excluding
surety, hypothecation of animal and assets created out
of bank's loan.
There would be maximum limit of loan of Rs. 1 million
per borrower/party
2. Initially the scheme will be for modernization of 5,000 farm
during 5 years period which involved Rs.700 million, 1000
farm would be covered under the scheme on yearly basis. The
project shall be started on pilot basis in potential area namely
Lahore, Hyderabad, Quetta and Peshawar zones and its
expansion would be made gradually.
3. PDDC would bear the entire amount of mark-up charged in the
loan cases. Provided the 50% of principal part of loan is repaid
in time by the borrower. The remaining 50% amount of
principal along with the amount of mark-up would be paid by
PDDC.

5.Sairab Pakistan Scheme

Water plays vital role to improve per acre yield. Out of total 31
million hectors area of Pakistan, 22 million hectors is cultivated
while 9 million hectors is culturable waste mainly due to nonavailability of water. More over increase in water supply being a key
input is required to raise cropping intensity and hence the income of
the farmer. Since inception ZTBL financed over 143000 Tubewells
amounting to Rs.15 billion. For raising irrigated area to accelerate
the economic growth and to facilitate the farmers ZTBL has signed
collaboration agreement with M/s KSB Pumps Company Limited
(Company) on 28th May, 2007. Farmers of atleast 3 acres land
holding will be eligible to avail financing under the scheme provided
loan proposal is feasible. ZTBL will disburse Rs.6 billion to the
farmers for installation of 30,000 Tubewells/Turbines during the next
five
years.
KSB
Pumps
Company
will
provide
quality
machinery/equipment for efficient pumping of water. The company
shall also provide after sale service including replacement of
parts/availability of spares etc. through its network of dealers. . .
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Zarai Taraqiati Bank Limited

Despite technological advancements and rapid growth of industrial

sector, agriculture is still the back bone of Pakistan's economy. It
contributes 22% towards GDP and employs nearly 45% of country's
labour force. It provides raw material for industrial products. So it
has both pull & push effect on the economy.
Water plays vital role to improve per acre yield. Out of total 31
million hectors area of Pakistan, 22 million hectors is cultivated
while 9 million hectors is culturable waste mainly due to nonavailability of water. More over increase in water supply being a key
input is required to raise cropping intensity and hence the income of
the farmer. Since inception ZTBL financed over 143000 Tubewells
amounting to Rs.15 billion. For raising irrigated area to accelerate
the economic growth and to facilitate the farmers ZTBL has signed
collaboration agreement with M/s KSB Pumps Company Limited
(Company) on 28th May, 2007.
ZTBL will disburse Rs.6 billion to the farmers for installation of
30,000 Tube wells/Turbines during the next five years.
KSB Pumps Company will provide quality
machinery/equipment for efficient pumping of water.
The company shall also provide after sale service including
replacement of parts/availability of spares etc. through its
network of dealers.
The company agreed to allow warranty period of one year.
ELIGIBILITY: Farmers of at least 3 acres land holding will be eligible
to avail financing under the scheme provided loan proposal is
feasible
Terms & condition for loan under "SAIRAB PAKISTAN SCHEME"
Type of Security
Agri. Land/ Other Tangible Security
Equity Contribution 25%
Cost of Credit
Rs. 20/ LA Form
Postal
RS. 50/- P.A .
Charges
Appraisal Fee 1%
9% PA with 1% rebate on timely repayment
Mark-up
5 years in half yearly installments with
Recovery Period
one year grace period
Maximum
Loan
Rs. 1 Milliion per case
Limit

6.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 upto Rs.O.500
million. Scheme's main features are as under:
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Zarai Taraqiati Bank Limited

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.

7.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 socioeconomic condition of the inhabitants of the area. The salient future
of the scheme are given as under:
Maximum Credit Ceiling of Rs.60,000/- per acre has been
fixed.
Farmers owing land upto 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 within11 years 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.

8.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 through out 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.a. will be
applicable.

11

Zarai Taraqiati Bank Limited

12

Zarai Taraqiati Bank Limited

MODERN AGRI TECHNOLOGY

Dairy Machinery
Fruit Grader
Garden waste chipper
MESCERO
Modern Agri Machinery
Implements
FLAIL MOWER
Agro Based Industries
Irrigation Machinery
Crops Orchard
Cut Flower Crops
High Tech Cheaper
Technologies
Offset Rotavator
Groundnut Thresher

Potato Digger
Potato Grader
Potato Planter
Pruning Equipment
SALUSTIANA

Self Propelled Rotary Hoe

Solar Devices
Stubble Shaver
Tunnels
Water Reel Sprinkler
Yanmar Combine Harvester

Fertilizer Spreader
Inter Row Rotary Cultivator

CREDIT LIMITS

Overall Credit Limit Per Borrower

Sada Bahar Scheme under one window
operation or otherwise

Rs.1.000 Million
Rs.0.500 Million

PER ACRE CREDIT LIMITS

1. Major Crops:
Wheat
Paddy
Sugarcane
Cotton
2. Minor Crops:
Mature Orchard/Fruits Crops:
Pear
1500
Loquat
20000
Plum
17000
Apple
34000
Papaya
22600
Almond
20000
Coconut
20000
Lichi
25000
Cherry
25000
Mango
30000
Apricot
25000
Banana
37000

9600
10300
20600
14600
Dates
Strawberry
Tea
Guava
Pomegrante
Palm
Olive Oil
Walnut
Persimen
Zizi Phus(Bher)
Melon
Water Melon

25000
25000
60000
15000
25000
15000
13000
23000
15000
25000
13000
11000

TYPES OF SECURITY

Immovable Property
1. Agricultural Land
Under Pass Book System
Outside Pass Book System

13

80%
70%

Zarai Taraqiati Bank Limited

Under Alienability Certificate

2. Commercial/Industrial Land under Pass Book
3. Outside Passbook System
Urban Residential/Commercial Plots in all
localities outside Pass Book
Alienability Certificate
Residential/Commercial Buildings
4. Lease hold rights of a leased land of CDA/KDA
with 99 years lease
Movable Property
Unconditional Bank guarantee
from scheduled Banks

66%
80%
75%
66%
70%
70%

Upto maximum amount of an unconditional Bank guarantee after

keeping sufficient margin for unpaid mark-up, cost, charges and
expenses.
Full amount of loan plus return and
other charges.
85% of face value or market values
whichever is less.
75%

Guarantee issued by Central or

Provincial Government
Government securities
Defense Savings & FEB
Certificates
Fix Term Deposits Receipts
NIT Units

85% of face value.

80% of the face value or market
values whichever is less.
85% of surrender value
Up to 75% of Govt. support

Life Insurance policies

Pledge of Potatoes/Seed Potatoes
price or market value which ever
is less
Personal Surety
Against a bond with two sureties
under General Credit and one
surety in Special Schemes upto
Rs.25,000/-

Upto 50% of appraised value of

properties of sureties.

MODERN AGRI TECHNOLOGY

Dairy Machinery

Self Propelled Fodder Reaper

Milking Machine
Milk Chilling Units
14

Zarai Taraqiati Bank Limited

Farm Yard Mannure Spreader

Fruit Grader

For grading all kinds of fruits this machine is equipped with roller
inspection belt, conveyer belt and grading disc for six sizes +
Handling of fruit is without damage.
SPECIFICATIONS:
Grading Disc: Speed variable
Power Required: 1x HP + 1 x
1/3 HP
Sizes of Fruits: Step less
adjustable
Weight: 400 kg

Garden waste chipper

Chips wood up till 8 cm with a knife disc and shreds branches and
other garden waste like grass, herbs etc. the machine is tractor
mounted and PTO driven.
SPECIFICATIONS:
Diam. Knife disc: 45cm
Number of knifes: 2
Revolution of knife disc: 1800
RPM
Weight:250 kg
Power Requirement:25- 30 HP

MESCERO

Seedless
Acidic / juicy
Highly productive
Round the year bearer
Export Oriented
An excellent crushing variety

Modern Agri Machinery Implements

Small HP Tractors (14-35 HP)

Combine Harvesters
Seed Processing Unit
Potato Grader
Multi Crop Planter
Potato Planter
Potato Digger
15

Zarai Taraqiati Bank Limited

Groundnut Thresher
Self Propelled Reaper for Wheat & Paddy
Reversible Disc plough
Three Rows Ridger
Rice Transplanter
Cotton Picker
Inter Row Rotary Cultivator
Sugarcane Harvester
Off Set Rotavator
Orchard Sprayer
Electrodyne Sprayer
Flail Mower
Stubble Shaver
Maize Sheller

FLAIL MOWER
Tractor driven machine used to cut the grass and shrubs in the
gardens. This machine is driven by PTO shaft. Crops residuals are
also cut down which can enhance soil fertility.
SPECIFICATIONS:
Working Width: 72 Inches (180
cm)
Power Required: 1x HP + 1 x
1/3 HP

Agro Based Industries

U.H.T. Treated Milk Plants

Yogurt Plants
Rice Mills
Juice Plants with paper packing facility
Packing Material for food items

Irrigation Machinery

High Speed Diesel Engines

Sprinkler Irrigation Systems
Drip Irrigation System

Cut Flower Crops

16

Zarai Taraqiati Bank Limited

Roses
Tube Roses
Gladioloi

Offset Rotavator

Its blades cut and pulverize the soil and incorporate trash
effectively. Offset type rotary cultivators are especially suitable for
soil cultivation in orchards particularly under trees. As the
implement is off-set to one side of the tractor, therefore, tree
branches do not cause hindrance to tractor operator.
SPECIFICATIONS
Speed: 540 RPM
Power required: 45- 50 HP

Development of High Tech Cheaper Technologies

Potato Digger
Inter Row Rotary Cultivator
Self Propelled Rotary Hoe
Self Propelled Reaper for wheat & paddy
Groundnut Thresher
Potato Planter
Water Reel Travelling Sprinkler
Three Row Ridger
Border Disc
Off Set Rotavator
Stubble Shaver
Flail Mower
Fertilizer Spreader
Seed Processing Plant
Fruit Grader

Crops Orchard

Soybean Cultivation
Multicut Hybrid Sorghum
Hybrid Maize
Tea Cultivation
Mint Cultivation and Distilation Unit
Hot Bin Mist Propagation Unit
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Zarai Taraqiati Bank Limited

Polythene Tunnels
Shade Netting
E.M. Technology
Exatic Fruit Plants
Deciduous
Mother plants
Dwafing apple rootstoc
Recommended varieties
Star Krimson (apple)
Red Beauty (plum)
Salustiana (orange)
Mescero (lemon)
MM 106 (apple rootstock)
Export Oriented Citrus plants
Sweet oranges
Mandarines
Lemons

Groundnut Thresher
This machine is used for separating pods from peanut vines. Pods
attached to the vines are fed from the top of the thresher. Clean
pods can be collected in sacks. This machine is powered by a small
HP Engine.
SPECIFICATIONS:
Engine Power: 2HP
Working Capacity: 300-370/ KG/Hour
Drum Revolutions: 400- 500 RPM

Potato Digger
This machine is connected to tractor 3 point linkage and driven by
PTO. Two rows of potatoes are dug out. The soil is separated from
the potatoes on the conveyor grids and on the longitudinal shaking
sieves. The potatoes are dropped in single row and collected by
hand.
SPECIFICATIONS:
Total length: 220 cm
Total width:160 - 170 cm
Weight: 360 - 380 kg

Potato Grader

18

Zarai Taraqiati Bank Limited

Potatoes are fed by elevator belt (variable speed to 3 riddles which

move the potatoes with adjustable shocks to roller inspection belts.
The machine has 4 outlets to provide different sized potatoes.
Handling of potatoes is with out damage, especially suitable for
seed potatoes.
SPECIFICATIONS:
Overall Length: 525 cm
Overall width: 125 cm
Riddles: 3 with square holes, 1 with bar
Motor: 0.75 KW
Capacity: 4000 Kg/hr

Potato Planter
The seeding mechanism is land wheel driven. The elevator chain is
mounted with cups lifting the seed potatoes from the hopper to the
seed funnel. Furrow openers open the furrows where the seed is
dropped. Seed is later covered by means of adjustable disc/ridger.
SPECIFICATIONS:
No. of Rows: 2
No. of Hopper: 2
Row to Row Distance: Adjustable
Field Capacity: 2 hours/acre

Pruning Equipment
Tractor mounted compressor with big capacity tank provides air to
two automatic hose reels with 50 meters house each. A variety of
pruning shear, tree shear, hedge trimmer (65 cm) and chain saw
(length 24 cm) is available.
SPECIFICATIONS:
Suction capacity: 850 L/Min
Tank capacity:250 L
Max. pressure:18 Bars
Normal pressure: 8- 12 Bars
Cutting capacity shears: 30-35
SALUSTIANA

Seedless
Sweet and Juicy
Thinly shinned
Excellent crushing variety
Highly productive
Broad acclamitization
Export Oriented

19

Zarai Taraqiati Bank Limited

Solar Devices

Solar
Solar
Solar
Solar
Solar

Lift Irrigation System/Tubewell

Fencing
Gyser
Loud Speaker System
Berg Alarm System

Stubble Shaver

For vigorous deep rooted ratoon of sugarcane crop stubble shaving

is essential. The process destroys unwanted cane stubble so that
the ratoon growth can develop further.
SPECIFICATIONS:
Blades: 6
Required HP: 55 HP

Self Propelled Rotary Hoe

SPECIFICATIONS:
Engine: 5 HP
Fuel: Petrol
Field Capacity: 0.75-1 acre/hr.

Tunnels

Production three folds as compared to open conditions

Early and late production
Considerable water savings
Weed control easy and effective

20

Zarai Taraqiati Bank Limited

Helps raising ornamental plants

Water Reel Sprinkler

This machine is used to irrigate almost all the agricultural crops.

Considerable water saving is made since there is noloss of water
due to seepage. The pump is operative by tractor PTO.
SPECIFICATIONS:
Flow:2-4 Lit/ Sec
Throw:35 Meter
Pipe Length:180 Meter

Yanmar Combine Harvester

This combine harvester is basically designed for harvesting of paddy

crop but it is also capable of harvesting wheat, sunflower, maize and
canola crops etc. It is fitted with screw rotor type threshing drum
due to which it does not cause grain breakage. 04 Units of this
combine harvesters are available in stock for sale which will be
supplied to intending buyers on " first come first served basis"
against cash or credit.
SPECIFICATIONS:
Model:CA-760
Engine: Yanmar 4TN100 , Water - cooled , 4
- Cycle , Vertical 4-Cylinder , Diesel Engine
Engine output: 76 PS/2600 rpm (75 HP)
Grain Handling System: Bagging type
Av. Field Capacity: 1.25 - 1.50 acre/hr
Paddy
1.50 - 2.00 acre/hr Wheat

Fertilizer Spreader

Chemical fertilizers utility increases if kit is evenly spread. Fertilizer

spreader evenly spreads if it is evenly spread. Fertilizer spreader
evenly spreads both granular and powdered fertilizers. The quantity
of fertilizer application can be adjusted according to requirement
without any wastage, thus ensuring optimum returns on fertilizer
investments. Fertilizer is put in the hopper, two rod like structures
continuously agitate the fertilizer.
SPECIFICATIONS:
Hopper capacity: 300 kg
Fertilizer spreading width: 10m
Weight:20 kg
Power Required:30-35 HP Tractor

Inter Row Rotary Cultivator

21

Zarai Taraqiati Bank Limited

This Rotary Cultivator can be used for hoeing of cotton, maize,

sugarcane, groundnut, tobacco and other row crops. Weeds are
controlled mechanically while aeration and infiltration of soil are also
improved.
SPECIFICATIONS:
No. of Rows: 3
Row to Row Distance: Adjustable
Working Width:20" / 50 cm

22

Zarai Taraqiati Bank Limited

DEBT EQUITY RATIO

For
Tubewell/Tractors/Implements/Attachments/Equipm
ents
1
.
2
.

All kinds of Tubewells/ Turbines

25%

New Tractor

3
.

Used Tractor, Equipments/

attachments/ implements and used
tractor

No equity but 10% of the

loan is to be needed in PLS
Account
-do-

Except Tubewell/ Tractors/ Implements/

Attachments/Equipments

Production Loan upto Rs.0.100 Million

Land holding upto 25 acres/loan amount upto Rs.0.2 Million
Land holding beyond 25 acres to 50 acres/loan amount
beyond Rs.0.2 Million upto Rs.0.5 Million
Land holding beyond 50 acres/loan amount beyond Rs.0.5
Million upto Rs.1 Million.

NIL
15%
25%
30%

Repayment period
S.N
o.
1

Types of
Loans
Short Term
Loans

Medium
Term Loans

Long Term
Loans

Recovery Period
Crop production working capital loans recoverable
in lump sum commencing after the
harvest/marketing of respective crops and within
maximum period of 12 months.
Dairy farming and livestock etc. In yearly/half
yearly/monthly installments and within maximum
period of 5 years.
Tractor, agricultural machinery, poultry farming,
godowns and orchard iIn yearly/half yearly
installments within maximum period of 8 years
and. above.

23

Zarai Taraqiati Bank Limited

RECOVERY PROCEDURE
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.

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.

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

24

Zarai Taraqiati Bank Limited

Rescheduling of Loan Repayment Facility

ZTBL allows rescheduling of repayment of installments to its
borrowers 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 casetocase 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.

Down Payment for Rescheduling of Loans

Rescheduling
Number
1st
2nd
3rd

Rate of down payment as against due

installments to be rescheduled
10%
20%
30%

25

Zarai Taraqiati Bank Limited

PRIORITIES TO ACHIEVE FOOD AUTARKY

Zarai Taraqiati Bank Ltd (ZTBL) has always played a pivotal role in
the agricultural uplift. Agriculture is vital for economic growth of the
country. In line with government's directives Zarai Taraqiati bank
Ltd. embarks upon a plan to achieve food autarky in annual credit
disbursement.
Zarai Taraqiati Bank Ltd (ZTBL) will continue to disburse loans for
traditional and non-traditional items. However, to increase the pace
of agriculture development the priority areas have been identified
as follows:
Improvement in water Management
Precision land leveling by using laser equipment
Land leveling through scrappers
Lining of water channels
Use of water saving devices like drip and sprinkle irrigation
systems.
Augmentation of under ground and surface water
Installation of tubewells in areas where water is fit for
irrigation
Construction of mini dams
Lift irrigation from riverines
Farm machinery & Equipment
Small tractors (25-30 HP)
Deep tillage implements
Seed drills/sowing equipment
Harvesting machines/equipment
Production of Improved seeds
Vegetable seeds
Hybrid maize/multicut Hybrid sorghum
Hybrid sunflower and canola
Pulses and food grain
Promoting Cultivation of Import Substitution Crops
Non-traditional edible oil seed crops having established production
potential including sunflower, hybrid canola and peanut
Cultivation of tea
Palm oil
Pulses and food grains
Olive oil
Betel leaf
Improvement of soil
Addition of soil amendments like gypsum, sulphuric acid etc to
saline/solid soils.
Water de-salination plant
Export Oriented Crops

26

Zarai Taraqiati Bank Limited

Floriculture (cut-flowers including gladulous, tuberoses and

roses)
Essential oil crops (Basal, Mint, Roses)
Fruits (Dates, Citrus, Mangoes)
Vegetables (Potatoes, Onion and other summer and winter
vegetables)
Nursery of Fruit Plants
Organically produced vegetables/fruits
Marketing of Agricultural Produce
Farm Transport (Pick-up, Motorcycle).
On Farm Storage
Dairy/Livestock Farming & Collection of Milk
Improvement of existing breeds through Artificial Insemination
(AI)/Embryo Transfer Technique (ETT).
Purchase of animals especially exotic cattle or cross bred dairy
and beef cattle (Local & Exotic).
Collection and Marketing of Milk.
Marine & Inland Fisheries
Fishing Boats against Tangible Securities.
Small Scale Fish Fanning upto 5 Acres.
Investment Opportunities in Non-farm Sector for Rural
Landless Poor and Women
Small Scale Enterprises (SSE)
Handicrafts Especially for Export Market.
Agricultural Machinery & Equipment for Custom Hiring
Tillage equipment.
Plant Protection Equipment.
Harvesting Equipment.

PRODUCTS:
Production loans (short term)
A.FARM CREDIT
Seed
Fertilizer
Pesticides
Pol
Labour higher and other changes
Veg minor crops(pack)
Tea cultivation
Others
B.NON FARM CREDIT
WC poultry
WC Dairy
WC Live stock
WC Inland fisher

27

Zarai Taraqiati Bank Limited

WC Marine fisher
WC Seri culture
WC Agro industry
WC food and tobacco(prod)
WC textile and clothing
WC leather(prod)
WC wood(prod)
WC bamboo, cane and Rel(prod)
WC CHEMICAL(prod)
WC non metallic minerals(prod)
WC metal(prod)
WC handicraft(prod)
WC miscellaneous(prod)
WC misc services
WC cottage industry
Development loans (medium)
A.FARM CREDIT
Open wells
Other private M.irrigation
Land development
Tractor implements
Tractor attachment\
Farm equipments
Farm transport
Draught animals
Orchards
Bambo cultivation
Repair of machinery
Oil seed thresher
others
B.NON FARM CREDIT
Small dairy farming
Poultry farming
Live stock
Inland fisheries
Marine fisheries
Food and tobacco(equip)
Textile and clothing
Leather(equip)
Wood(prod) (equip)
Bamboo, cane and rel(equip)
Chemical(equip)
Non metallic minerals(equip)

28

Zarai Taraqiati Bank Limited

Metal(equip)
Handicraft(equip)
Miscellaneous (equip)
Misc services
Cottage industry

DEVELOPMENTAL LOANS:
A. Farm credit
Tractor
Tractor implements
Tractor attachments
Farm equipments
Threshers
Sprayers
Combine hervester
Tube wells
Turbines
Go down/Cold storage
Tea plantation
Orchards
Others
B.

Non Farm credit

Large dairy farming
Poultary farming
Inland fisheries
Marine
Bee keeping
Forestry
Others

29

Zarai Taraqiati Bank Limited

LOANS & SCHEMES

Zarai Taraqiati Bank Ltd. Provides agri. Loans to the rural poor for
uplift of farm activities. The detail is as below:
Agri. Loans: A farmer who is engaged in agriculture activities or
owns a land should provide following documents to avail loan
facility:
Agriculture pass book
National Identity card (photocopy)
Two passport size photos
Application form (Rs. 20/-)
Loan Fees: percent for production loans upto Rs 50,000/- and
1 percent for loans above Rs. 50,000/ Postal Charges: Rs. 50/- per year for term of loan
Self Contribution:
No self contribution for production loans upto Rs. 100,000/-For loans
above Rs. 100,000/ of production loans and all development loans
the self contribution will be as follows:
Land holding upto 25 acres 15% or loan upto Rs. 200,000/ Land holding between 25-50 acres 25% or loan upto Rs.
500,000/ Land holding above 50 acres 30% or loan over Rs.500,000/ Note:
In case of development loans e.g. tractor loan cases the self
contribution will be determined on land holding limit otherwise loan
amount will be under consideration.
14% mark up is charged annually however 12% revenue
commission and court charges will be levied in case of nonpayment of dues timely.
Production loans are recoverable at the time of harvesting and
period lasts from 6-18 months.
Medium term loans are repaid in five years and long term
loans are repaid beyond five years.
Production loans
Production loans are disbursed also through following schemes:
One Window Operation:
Loans are disbursed twice a year for Khariff (June-Aug) and for
Rabi (Oct-Dec).
After on spot completion of procedural formalities, the
production loans of Rs. 60,000/- are disbursed the next day.
Under the scheme production loans upto Rs. 1,20,000/- is
disbursed annually provided that in one season loan availed is
not more than Rs. 60,000/Revolving Finance Scheme
Under the scheme after completion of documents production loans
upto Rs. 5 lac for Rabi/ Khariff, vegetables and poultry are disbursed

30

Zarai Taraqiati Bank Limited

for three years on a simple application, Provided previous due loan

has been repaid and utilized properly.
Micro Credit Scheme
Under the government's Poverty alleviation programmes the loans
up to Rs. 25000/- are disbursed for cottage industry and income
generating activities. 18% Mark up is charged on Micro Credit.
Timely repayment entails 2% waiver. The interested borrowers can
obtain individual/group loan through personal guarantee.

THREE TYPES OF LOAN SCHEMES:

1. Micro Credit Scheme
2. Credit Program For Women
3. One Window Operation & Revolving Finance Scheme

1. MICRO-CREDIT SCHEME
Under the Micro-Credit Scheme, credit facilities are provided to the
neglected sectors of the society. Minimum credit limit under the
programme is Rs.5000/- while the maximum limit is Rs.25,000/-.
The scheme is operative through all 343 branches of the bank,
assisted by 1353 Mobile Credit Officers (MCOs). All loans under this
scheme are recoverable within 18 months with a mark up rate of
18% whereas on timely repayment a rebate of 2% is allowed. Under
this scheme the Bank disbursed Rs.43.678 million in 1965 cases and
recovered Rs.57.843 million (50.7%) during the year 2002-03.
ELLIGIBILITY:
According to the micro credit scheme all unemployed or low salaried
Men and women, farmers and those landlords whose land are not
more than 12 acres individually or grouped are eligible to apply for
the loan. But incase that they have not taken any type of loan
previously from ZTBL or any other financial institution or non
financial institution and the borrower should not be the defaulter of
ZTBL and other financial and non financial institution.
SECURITY:
Immoveable property is held as a security
If the borrower doesnt have any property of its own then
he has to give personal guarantee for availing the loan.
The guarantor can give the guarantee half of his property
but this is only for two borrowers.
The permanent employee of provincial and federal can give
the guarantee on one third part of his salary.
PURPOSE OF LOAN:
According to micro credit schemes there 137 purposes for which
the loan is given to increase the income and to establish small
home industries and they are further classified in to following
major categories:

31

Zarai Taraqiati Bank Limited

Production of food items

Leather goods
Textile and clothing preparation
Wood and wood goods
Handicraft
Metal goods
Chemical goods
Miscellaneous
Agricultural purposes
Other than these purposes loans are given which will help in the
increase of employment.
MICRO CREDIT SCHEME FOR RURAL POORS
In line with the policy of the Federal Government it has been
decided to start Micro Credit Scheme in one selected branch in each
of 49 Regions of the bank through out the country from financial
year, 2000-2001. Funds for the scheme will be allocated to each
region separately. There is a plan to serve one Million poorest people
through out the country in a phased manner.
INSTITUTIONAL SETUP
Loan will be extended in the first phase to the genuine borrowers
through MCO's especially deputed/trained for the purpose, in one
Qanugai circle in a selected branch having relatively high incidence
of poverty. Within the selected branch a separate Micro Credit
Window shall be opened.
ELIGIBILITY & PURPOSE OF LOAN
The MCO (Micro Credit) would carry out a complete survey of the
area regarding landless poor/ tillers/ haris/ small land owners having
land not exceeding 2 acres and the intended borrowers will also be
grouped/ classified into skilled, semi-skilled & unskilled. He will also
identify the schemes best suited to the areas. Both male and female
population will be eligible for loan under this scheme. Loans could
be extended to individuals, members in groups consisting of at least
5 members separately formed for men & women of like minded and
preferably same age group.
New/fresh borrowers will qualify for the micro credit provided they
have not obtained loans from any other source. However, old
loanees who have not remained defaulters of ADBP and other
Banks/Financial Institutions and have shown good repayment
behavior in the past will also be considered for such loans.
Loan will be admissible for working capital and all specified items.
Any other income generating activities found viable and popular in
the area at cottage level will be allowed after the approval of Head
Office.
SAVING ACCOUNTS
To encourage saving habits among rural poor special emphasis is to
be given for opening of PLS Accounts of the borrowers who will
deposit there saving in their accounts regularly. The PLS Account

32

Zarai Taraqiati Bank Limited

shall be maintained with balance of 5% of loan amount. In case of

group loan the accounts will be operated by the 2 member's
nominated by all the members of the group.

33

Zarai Taraqiati Bank Limited

LOAN CEILINGS
Minimum credit limit will be Rs.5000/- while the maximum limit will
be Rs.25,000/- under the Micro Credit Scheme. These limit are
however subject to review by Head Office from time to time.
COLLATERAL
All loans under the scheme will be secured by a bond, with one
surety against 50% solvency of the assessed value of the property
owned by the guarantor. The guarantor would be allowed to stand
surety for two person provided the guarantor is solvent to that
extent. The guarantor/surety would preferably be from the same
village in order to ease contacts/follow-up for ensuring proper
utilization of funds and timely recovery. The other conditions as per
para 4.49 of the Credit Manual will also be observed meticulously.
Necessary entry of Bank's charge on the surety/guarantor's landed
property would be got made by the MCO personally in the daily
Roznamcha and consequentally in the remarks column of
Jamabandi.
Loans could also be advanced against security of tangible properties
as per standing instructions of the bank.
DOCUMENTATION/BORROWERS CONTRIBUTION
The borrower's minimum balance of 5% of the loan amount standing
in his PLS account will be considered as his equity contribution
towards scheme.
Loan Application Form shall be free of cost. However, L.A. fee @
0.5% of the short term loans and 1% of the medium term loans and
Rs.50/- per year as postal charges etc; will be charged.
Loan documentation will be same as is prevalent and will be
processed
under
Bank's
standing
instructions.
Simplifications/Modifications of bank's document/instructions is
however, a regular phenomenon and these are constantly reviewed
for benefiting the bank's clientele.
RATE OF RETURN
Loans under micro credit will be sanctioned/disbursed under markup mode of financing.
Loans under this scheme will be advanced initially on 18% rate of
mark-up whereas for timely repayment rebate of 2% shall be given.
This rate is however, further subject to review/revision free from
time to time keeping in view the operational cost of the scheme and
the funds borrowed by the bank from other agencies.
LOAN SANCTIONING
The respective MCO is hereby made competent to sanction the loan
under the scheme upto Rs.25,000/-.
Sanction letters will be issued to loanees under the scheme.
However, a rubber stamp may be prepared showing "Micro Credit
Scheme" and affixed on top right hand side on the loan application
forms, and sanction letters etc.
The establishment of identity, character, reputation and credit
worthiness of borrower and guarantor shall be personal

34

Zarai Taraqiati Bank Limited

responsibility of the MCO. For any miss-utilization/ missappropriation at any stage not only the respective MCO shall be
made personally responsible rather respective Manager/Regional
Manager shall also be made responsible.
UTILIZATION OF LOANS
Manager and MCO concerned will be responsible for monitoring,
assisting and guiding the borrower for successful and proper
utilization of loans in 100% cases. For this purpose MCO (Micro
Credit) will maintain a seperate and proper record and carry out
regular follow-up and check utilization in cent per cent cases
immediately after the disbursement of the loan, but not later than
one month of loan disbursement. Likewise the Regional Manager
and Manager will check at random the utilizations at 10% and 25%
respectively of all sanctioned/paid loan cases. MCO/Managers/RM's
shall be personally responsible for the success of the programme.
RECOVERY SCHEDULE
The recovery period for different item will be fixed in harmony with
flow of cash income generated from loan and life of assets created
out of such loans ranging from monthly and quarterly according to
the nature of the scheme. Recovery rate would be ensured 100%.
Action will be initiated if the prescribed rate of recovery is not
achieved.
MAINTENANCE OF DATA/SUPERVISION
Micro Credit and Special Scheme Department will monitor the
scheme closely and shall put up monthly progress report covering
all the major areas of operational activities.
REPAYMENT OF LOANS
According to this scheme 18 month is the maximum time period for
giving back the loans payment.
LIMIT OF LOAN AND MARKUP
According to this scheme minimum loan value that is given is 5000/Rs and maximum is 25000/- Rs and the markup charged on yearly
base that is 18%but in case if the borrower pay the full payment
within due date discount of2% is also given but this rate can be
different with change in time.

2. CREDIT PROGRAM FOR WOMEN

Realizing that women constitute over half of the countrys
population, have very little access to formal credit, the Bank
initiated lending for women in 1987 under IFAD assisted Gujranwala
Agricultural Development Project. Since then ZTBL has expanded
and intensified its financing to women through the introduction of
Special Credit Programme for Women. The programme aims at
providing access of credit to women at their doorstep enabling them
to undertake income generating and agricultural activities.
Financing under this programme cover all general loans as well as
loans under Micro-Credit Scheme. The loans are advanced to the
35

Zarai Taraqiati Bank Limited

rural women through Female Mobile Credit Officers in 19 branches

of 17 regions covering all provinces in Pakistan. The Bank has
planned to further expand the programme by inducting 200 MCOs
(Female) to serve 66000 women over next five years.
During the year 2002-03, the Bank disbursed Rs.42.099 million to
1074 female borrowers and recovered Rs.53.081 million (58%)
under the programme.

SPECIAL LADY CREDIT OFFICERS ARE PROVIDED FOR THESE

N
o
1

ARES:
BRANCHES

N
o
DERAGHAZI KHAN 7

BRANCHES

BAHWALNAGAR

HAYDRABAD

BAHAWALPUR

LARKANA

MULTAN

10

NODARO

GUJRANWALA

11

MAMUN GOATH

GARANWALA

N
o
1
3
1
4
1
5
1
6
1
7

BRANCHES
GUDAP
FISH HARBOUR
PESHAWER
ABBOTABAD
QUETTA

FAISALABAD
12 IBRAHIM HADRY
PURPOSE:
Womens can not only take loans to increase income and small
home industries with 37 purposes but can also take loans for normal
agriculture loans like cultivation of agriculture products, tractor,
tube well, poultry, animal breeding, fishries, tree plantation and for
forests.
SECURITY:
Loans are given while taking immovable resources as security but if
she doesnt have any immovable resources then about 25000/value loan can be given on personal guarantee.
LIMIT TO LOAN:
To increase the income and to develop small ideas 5000/to 25000/-Rs loans are given in micro credit schemes.
These loans are for 18 months.
Period for agricultural purposes:

Long term
Short term
Medium term

5yrs
18months
5 and above

MARKUP RATE:
Small industries

18% yearly markup rate

Ordinary

19% yearly markup rate

36

Discount
2%
payment on time
Discount
1%

if
if

Zarai Taraqiati Bank Limited

agricultural loans

payment on time

37

Zarai Taraqiati Bank Limited

3. ONE WINDOW OPERATION & REVOLVING FINANCE SCHEME

During 2002-2003, ZTBL continued its expeditious delivery of credit
to farmers with special reference to subsistence and small farmers
through One Window Operation. The Operation has established its
importance by witnessing tremendous strength in timely channeling
of production loans to small farmers, which contributed significantly
towards increasing the farm productivity. Since introduction, One
Window Operation has emerged as a viable and transparent system
of credit delivery for small and subsistence farmers. The success
and effectiveness of One Window Operation can be witnessed from
the fact that the coverage of beneficiaries has shown spontaneous
rise which increased from 145671 borrowers in 1997 (since its
introduction) to 458238 number of borrowers in the year 2002-03.
An amount of Rs.2530.284 million were disbursed in Punjab,
Rs.91.799 million in Sindh, Rs.44.658 million in NWFP and Rs.24.906
million in Baluchistan under One Window Operation during the year
under review.
Revolving Finance Scheme is also under operation since 1999 to
facilitate genuine and credit worthy borrowers of the bank to meet
their seasonal requirement without repeating procedural formalities.
Under the scheme, Rs.10648.874 million was disbursed in Punjab,
Rs.1071.453 million in Sindh, Rs.183.836 million in NWFP, Rs.33.824
million in Balochistan.
INTERNAL AUDIT
As yearly audit of the organization is a mandatory requirement, 36
Audit Teams supervised by 12 Audit Directorates in the field
completed internal audit of all 343 branches, 49 Regional Offices
and Head Office by achieving 100% target well before the close of
financial year in order to facilitate branches for recovery operations
during the months of May & June.
SIZE-WISE COMPOSITION OF LOANS
Composition of credit disbursement by size of loan during 2002-03
reveals that loans up to Rs.25,000/- constituted 6.1% of total credit,
whereas loans between
Rs.25001/- to Rs.50,000/- constituted
19.7%. Share of loans between Rs.50,001 to Rs.200,000/- was
54.4% and loans above Rs.200,000/- constituted 19.9% of the total
credit. The average size of loan amount was Rs.68,472 per loan
case.
PURPOSE-WISE DISBURSEMENT OF LOANS
During the year under review, the Bank advanced Rs.23,110.581
million (79.0%) for production purposes as against Rs.22,010.843
million (75.6%) disbursed during the last year. Item-wise distribution
shows that major share amounting to Rs.11121.177 million (38.0%)
was channeled for chemical fertilizers followed by Rs.6651.538
million (22.7%) for improved seeds and Rs.4595.984 million (15.7%)
for pesticides.

38

Zarai Taraqiati Bank Limited

Disbursement for medium and long term development purposes

amounted to Rs.6159.585 million (21.0% of total loans) during 20022003. Out of total disbursement of development loans, the Bank
advanced Rs.2802.422 million (9.6%) for purchase of 10203 tractors
of various makes and Rs.383.853 million (1.3%) for farm
implements. All efforts were made for tube-well financing to explore
the potential of underground water resources to minimize the
drought effects for which Rs.970.140 million (3.3%) were disbursed
for installation of 5602 tube wells in the country during 2002-03.
Apart from concentrating on increased farm mechanization,
attention was also focused on promoting dairy, poultry and livestock
sectors. Accordingly, Rs.1162.324 million (4.0%) were disbursed for
dairy farming, Rs.182.606 million (0.6%) for livestock and Rs.17.459
million (0.1%) for poultry farming (including working capital).
Disbursement for godown/cold storage, orchards and land
development was Rs.254.902 million (0.9%), Rs.57.767 million
(0.2%) and Rs.55.509 million (0.2%) respectively. Fisheries loans
including working capital amounted to Rs.10.225 million (0.0%).
RECOVERY OPERATIONS
The Banks efforts on recovery front during 2002-03 recorded
phased improvement, despite the fact that the agriculture sector, as
a whole suffered from drought situation, marketing problems of
major crops and low yield per acre of cotton crop due to severe
insect pest attack. The deployment of Indian forces on the Pakistans
border rendered the operations more difficult as a large number of
people of border areas shifted to other safe places. In the presence
of all these factors, the Bank attained all time record recovery of
Rs.34368.859 million during the year 2002-03 as against
Rs.33545.930 million recovered in the last year witnessing a growth
of 2.5%. The overall recovery rate declined to 48.4% against last
years recovery rate of 55.8%. Recovery of current dues grew by
8.3% whereas recovery of past dues declined by 27.6% as against
last year.
Project loans recovery continued to be low, which was only 0.9% as
most of the agri-business projects are closed or non-operational.
Recovery rate under Revolving Finance Scheme was 82.9% followed
by 66.1% under One Window Operation as well as Micro-Credit
Scheme.
Scheme-wise detail of recovery operations is given in the following
table:
(Rs. million)
Particulars
Recovera Recovery Recovery
ble
(%)
Agricultural Credit
61662.76 34282.48 55.6
3
4
a) Production Loans
36347.788 23415.539 64.4
b) Development Loans
25314.975 10866.945 42.9
c)
One
Window 6111.609
4037.982
66.1

39

Zarai Taraqiati Bank Limited

operations
d) Revolving Finance
Project Loans
Micro Credit
Past Dues
Current Dues

10216.903
9288.145
114.128
26527.02
7
44423.88
1

40

8469.694
86.375
57.843
3936.279

82.9
0.9
50.7
14.8

30432.58
0

68.5

Zarai Taraqiati Bank Limited

ZTBL ROLE IN POVERTY ALLEVIATION

In order to supplement the governments programme for poverty
alleviation, ZTBL is facilitating rural poor by extending financial
assistance under the following credit programmes:-

PROVINCE-WISE LOAN DISBURSEMENT

During the year 2002- 03, Punjab province received the highest
disbursement of Rs.22489.997 million (76.8%) being the largest
agricultural producing province of the country. It was followed by
Sind which shared Rs.4731.797 million (16.2%). NWFP and
Balochistan got a share of Rs.1504.350 million (5.1%) and
Rs.381.424 million (1.3%) respectively. Share of AJK and FANA was
Rs.77.287 million (0.3%) and Rs. 85.311 million (0.3%) respectively.

LOANS TO SUBSISTENCE AND SMALL FARMERS

ZTBLs priority for increased financial assistance to subsistence and
small farmers was reinforced. All out efforts were made to channel
the major share of its loan disbursement to small farmers. During
2002-03, Rs.18313.724 million were distributed among subsistence
farmers sharing 62.6% of agriculture credit as against Rs.18904.869
with the share of 64.9% in the year 2001-02. Availability of credit to
farmers operating land up to 25 acres (including land-less)
amounted to Rs.24466.040 million which constituted 84% of
agriculture credit as against a share of 86% provided to this
category during the previous year.
CREATION OF INSPECTION & COMPLAINTS DIVISION/
DEPARTMENT
In order to redress grievances of farming community and ensure
transparency in lending operations, an independent Inspection &
Complaints Division/Department was established on February 2,
2002 in the Head Office with its 9 Units in the field. This Division and
its Units are acting as eyes and ears of the management

HOLDING-WISE DISBURSEMENT
Holding-wise disbursement of loans during 2002-03 reveals that
land-less population received Rs.79.185 million which was 0.37% of
the total loans. Disbursement to owner/operators up to 12.5 acres
amounted to Rs.17540.849 million (59.9%). Farmers operating land
between 12.5 to 25 acres received Rs.6846.006 million (23.4%)
followed by Rs.3062.296 million (10.4%) disbursed to farmers with
land holding between 25 and under 50 acres. Rest of the general
credit amounting to Rs.1741.830 (5.9%) was disbursed to land
holders operating 50 acres farms and above.

OPERATIONAL REVIEW

41

Zarai Taraqiati Bank Limited

Zarai Taraqiati Bank Ltd while adhering to the faith of serving

agriculturists and rural poor of the country contributed a share of
50% in total institutional agricultural credit.
Since inception, the Bank has served more than 5 million farmers
with loan amount of Rs.268.425 billion up to 30.06.2003. The Bank
so far has financed 446570 tractors and 130160 tube-wells besides
financing improved hybrid seed, fertilizer, pesticides, insecticides
etc. The Bank also extended credit facilities to neglected sector of
the society and launched Women Credit Programme and Micro
Credit Scheme to make credit more accessible to poor population in
rural areas of the country
FARM
MECHANIZATION
&
WATER
RESOURCE
DEVELOPMENT
Modernization and mechanization of agriculture is crucial for
achieving self sufficiency in food production through increasing farm
productivity and reducing pre and post harvest losses. Without
introduction of modern/efficient technology, the required level of
growth/production can not be achieved. To supplement the
government efforts towards attaining self-reliance in major crops,
the Bank attached high priority to modernize the agriculture sector
and promote farm mechanization.
Application of modern
technology
plays a critical role in improving farm efficiency and
enhancing farm production through bringing additional land under
cultivation. The Bank has played a leading role in financing of a wide
range of machines covering tractors, tube-wells, farm implements,
threshers and combine harvesters etc. So far 446570 tractors and
130160 tube-wells have been financed. Financing of tractors and
tube-wells and other farm implements has directly helped in
enhancing arable land, rise in cropping intensity and increasing
yields besides improving the efficiency of farm operations.
Pakistans agriculture is heavily dependent on irrigation. It is well
known that an efficient irrigation system is a pre-requisite for
increasing agricultural production. Due to unprecedented drought
situation in various parts of the country, the water supply and its
availability for irrigation has worsened. In view of prevailing drought
situation, the Bank has focused due emphasis to provide loans for
installation of tube-wells/turbines, open wells desilting and brick
lining for water channel, precision/laser land leveling, drip/sprinkle
irrigation system and sulphurous acid generator (SAG-10 to convert
brackish water into sweet water) to augment water system.
In order to create awareness amongst farmers regarding new
technologies/techniques,
the
ZTBL
arranged
field
days/demonstrations in the field and also participated in Industrial
Exhibition, 2002 at Lahore by setting up ZTBL pavilion of modern
farm machinery and other technology items. Moreover, an
agricultural information unit has been established to impart
knowledge on latest technologies to interested growers and Banks
field functionaries.

42

Zarai Taraqiati Bank Limited

DISBURSEMENT OF LOANS
Despite overall unfavorable conditions for the field operations, the
Bank registered 5% growth in disbursement of loans. This was
attained through managing credit availability from Banks own
resources. During 2001-02, loans amounting to Rs.29.108 billion
were disbursed to 462639 borrowers as compared to Rs.27.610
billion disbursed to 455053 borrowers during the last year.
Disbursement under short term production loans (for hybrid
improved seed, fertilizer, pesticides and labour charges etc.)
increased from Rs.18.780 billion in the year 2000-01 to Rs.22.011
billion during 2001-2002 registering a growth of 17 percent.

INAUGURATION OF PRODUCTIVE LOAN:

Pakistan is an agricultural county. Almost 2/3 of its population is
settled in villages and half of the man power is related to agriculture
profession. To increase the agriculture production we need high
quality seed, fertilizers, pesticides, and on time cultivation is very
important. Landlords or the cultivators dont have enough

43

Zarai Taraqiati Bank Limited

knowledge and recourses that they can fulfill their production cost
by themselves. So as to provide them some financial help ZTBL has
started 1window operations.
Features:
On the time of kharif cultivation bank on every Monday and Tuesday
go to different areas with the workers of post office and mahkama
mall for one window operations. Where on the spot the farmer takes
the pass book from the workers of post office, and takes the
possession of its property from the mahkama mall along with its
value and then approving their loan from the mobile credit officer
for himself and can take the loan from the stated branch. All those
farmers having at least 25 acres of land and 50 acres of barani area
can avail this opportunity.

LOAN FOR TRACTOR:

In one window operations applications for tractor loans are also
taken but for that at least 6 people group is made having 12 acres
of land area.

IMPORTANT DOCUMENTS:
Productive loans:
Application form(free)
Agricultural pass book
Computerized NIC
2 passport size photographs
Limit for kharif, s important crops
Serial no
1
2
3
4
5
6

Crop
Wheat
Rice
Jawar
Bagra
Moong
ganna

Amount of loan
10000/-Rs
7000/- Rs
1975/- Rs
1705/- Rs
2205/- Rs
16000/- Rs

NEW PRODUCTS:
ZTBL has started many schemes for easily availability of loan and
one of them is the SADABAHAR SCHEME. This scheme prevents
the borrowers from the paper work and for on tome loan payment.
Important points:
After completing the paper work for the first time one can get
his loan of 5 lacs approved for 3yrs.
He has to pay the markup only on the used amount.
Annual loan limit can exceed upto 10% for the maintenance of
small expenditure like electricity bills or machinery other than
yearly cultivate crops
The borrower can use any amount of approved loan
upto approved annual loan amount
44

Zarai Taraqiati Bank Limited

According to this scheme no fees is charged it is necessary to

make atleast on payment in a year and after that loan is
approved without any paper work
LOAN PAYMENT AND ITS APPROVEL:
According to this scheme the MCO can approve loan upto 2
lacs for rabi and khariff crops.
Branch manager has the authority to approve loans upto 5
lacs.

INTEREST CHARGED:
Interest rate is not following the Islamic mode of financing but it is
on markup bases. They do started Islamic mode but they had loss in
it so they adopted markup. Interest rate charged is 9% but if the
payment is made on time then only 8% interest is charged. it also
depends upon the value of asset if it decreases then interest will not
be charged on that asset and only principal amount is taken. first
interest increased with time but then the bank adopted a policy that
after a specific time interest is not charged on the amount.
RECOVERY:
In their recovery process they give as many chances as they can
give to the borrower for giving or paying back the loan for this they
first inform the borrower through a demand letter and tell them that
only 2 months are left in their loan expiry so they have to pay the
loan payment with in 2 months. after 1 month of the loan expiry if
the borrower doesnt pay then loan payment back then another
notice is sent to him in which the organization tell him that he
should pay the loan or legal action will be taken against him. and
know a days it is done by recovery ordinance 2001.if still there is
no recovery of loan then according to recovery ordinance 2001
another legal notice is sent to that person and if still there is no
recovery then open action will be taken against the defaulter. But
still they dont liquefy its assets and send their man to the borrower
and he tell the borrower that he has to pay the loan and checks
weather the person has the ability to pay the loan payment back
and what ever he has said is right or not. And if he is right then he is
given another chance that when his conditions will be good he will
pay the payment of loans. And after along time if the loan is not
paid and there is no chance of recovery then it is right off. According
to them this organization is established ton provide ease to their
customers not to create problems in their lives and in case of any
disasters the loans are rescheduled i.e. deferred till one year
INSTALLMENTS:
Loan payment is installment based and full payment can also be
made. Normally installments are of 6 months or yearly but it also
depend upon the product of loan

LIMIT TO LOAN:

45

Zarai Taraqiati Bank Limited

Maximum amount that is given as loan is 10 lacs and minimum

amount is not fixed it can be any amount.
and there target is to give as much loan as the borrower demands
amount wise it is 35 to 45 million but it is not necessary that the
target is also achieved.

VALUATION:
For valuation they have a land revenue act. For valuation they have
selected special persons or employee that is usually thepatwari.
He valuates the security or land and tells its value if the security
value is less then the value demanded for loan then loan is not
given. After the valuation is done a report is made and submitted in
the related branch and then it is approved by the higher authority.
And after the approval and with their full satisfaction loan is given to
the borrower. In valuation process one also keep in mind that the
location ,environment and the conditions are in favor and get the
assurity that they will(org) will get their loan payment back.

CROPS LOAN:
Loans for crops are given for 6 months and after six months the
farmers have to make payment
CURRENCY TYPE:
LOAN TYPE
Joint credit
Project loans

CURRENCY
Local currency i.e Rs
Local as well as foreign currency

CLIENTS TYPE:
It contains public as well as private clients but the loans demanded
should be related to agriculture

46

Zarai Taraqiati Bank Limited

ZTBL FIELD SETUP

FANA

AJ&
K

NWF
P

PUNJA
B

BALOCHISTAN

SIND
H

47

Zarai Taraqiati Bank Limited

FEEDBACK

48

Zarai Taraqiati Bank Limited

Kissan support services (pvt) limited

First meeting of Human Resource Management Committee of the

Board held on November 10th, 2005 approved the proposal to
outsource non core services of the Bank & formation of Bank's
Subsidiary to provide different kind of support services.

ZTBL Objective

Restructuring plan under RFSDP.

To operate on commercial lines to expand its outreach, the
Bank is under going a process of organizational, financial and
functional restructuring.

ZTBL HR Strategy

Bank to look at activities it performs and attach economic

value to undertake the activity commercially.
Ensure the Banks financial and human capital is rightly
deployed.
As strategy Bank should use excessively outsource as
medium to add flexibility to its use of Human Resource.
To ensure that non-business/support function have just the
right staff complement.

Formatting Of KSS

1st meeting of Human Resource Management Committee of

the Board held on November 10th, 2005 approved the
proposal to outsource non core services of the Bank and
formation of Banks Subsidiary to provide different kind of
support services.
Formation of the Banks subsidiary KSSL subsequently
endorsed in 20th meeting of ZTBL Board held on November
16, 2005.
The Security Exchange Commission of Pakistan allowed
incorporation of KSSL, a Subsidiary of the Bank.

Appointment of MD

1st Meeting of the BOD of KSSL held on 04.03.2006 approved

appointment of CEO/MD of the company
49

Zarai Taraqiati Bank Limited

Financially Viability

Established purely for strategic and administrative reasons by

exercising control on related work force and maintaining
prescribed service quality standard.
Transfer of approved share capital of Rs.100 Million to KSSL.
Decided that all day to day expenditure of the Company shall
be paid by the ZTBL through an inter Company Account.

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

Organization Structure

Cadres in KSSL

General Staff Cadre

Includes persons employed to perform the task of Peons, Mali,
Chowkidars, Helpers, Sweepers & Armed Guards and similar other
jobs. Minimum monitized salaries of Rs.5000/= P.M.
Technical Staff Cadre
Includes persons employed to perform jobs requiring particular
technical skills such as the tasks of drivers, Cooks, Lift Operators,

50

Zarai Taraqiati Bank Limited

Electricians, Plumbers, Masons & Carpenters etc. Minimum

monitized salaries of Rs.6000/= P.M
Clerical Staff Cadre
1. Assistants:
Includes
Field
Assistants,
Security
Supervisors, Store Keepers, Typists, Stenos, Computer
Operators, Qaris etc. Minimum monitized salaries of
Rs.7000/= P.M.
2. Senior Assistants: Includes Work Shop Supervisor &
Senior Assistant etc. Minimum monetized salaries of
Rs.8000/= P.M
Gratuity @ one month monetized salary for each
completed year of service.

Expenditure of KSSL
Total Expenditure Incurred (Up to Dec 2006)

Pay & allowances - officers

4.633

Pay & allowances - Staff

23.482

Liveries

1.034

Traveling Expenses

0.033

POL Expenses

0.154

Postage, Telegrams & Telephone

0.179

Publicity & Advertisement

2.493

Stationery Expenses

0.043

Repair, Maintenance & Depreciation

0.0487

Vehicle Registration, Token Tax etc.

0.046

Fee and other Expenses of BOD

0.012

Audit Fee

0.040

http://vidpk.com/view_video.php?vid=28253
Actuarial valuation of gratuity
0.020
Preliminary Expenses

0.267

Janitorial Services

0.128

51

Zarai Taraqiati Bank Limited

Photo Copy Services

0.039

Sports Expenses

2.248

Gratuity of Ex-ZTBL Employees

0.264

Gratuity of Ex-ZTBL Employees

0.012

Total Expenditure Incurred

35.614

Financial Overview
Financial Overview (Up to Dec 2006)
(Amount in Million)

Capital Invested by ZTBL

100.000

Interest Income earned on Investment

5.676

Provision for Taxation

2.134

Profit after Tax

3.542

Assets Transferred by ZTBL

2.332

Total Expenditure Incurred (19/9/05 35.614

31/12/06)

Objectives
Objectives
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 banks staff
Drip Irrigation SystemTo 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
52

Zarai Taraqiati Bank Limited

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 Banks clients quality products and
services for efficient and improved farming
Etc.

Recuitment
Regular

The entry point of recruitment in the regular employment of the

Company shall be in General Cadre, Technical Cadre and Clerical
Cadre. The recruitment shall be through a process of open
competition and selection by a Selection Committee to be
constituted by the Competent Authority.
On Contract

The Company may, however, employ a person on contract basis for

a specific job for a duration not exceeding three years in aggregate
on such terms & conditions as may be determined by the competent
authority, provided however that such a person had not been retired
or relieved from the service of the Company and/or ZTBL under the
terms of a Golden Handshake Scheme, an early retirement scheme
or terminated in terms of staff regulations

Services
Services Activities so far under taken by KSSL

Security Services to ZTBL

Recruitment/provision of staff
Janitorial Services provided to:
a. ZTBL Head office buildings
b. Ztbl Farms
53

Zarai Taraqiati Bank Limited

c.
d.
e.
f.
g.
h.

Staff college
Printing stationery office
AV Unit
Old record office
Sports club
Warehouse

Management of Sports Activities

Management of Sports Activities
Photocopy Services
Day to day minor repair and maintenance of ZTBL HQ
Buildings

KSSL BOD
Composition of BODs of KSSL
Mr. Mansur Khan
(President ZTBL)

Chairman BODs

Mr. Muhammad Rizwanullah

MD/CEO KSSL

General Manager

Mr. Basharat A. Malik

Head (HR) ZTBL

Member

Mr. Sahib Nawaz Khan

Member

Mr. Abdul Ghaffar Bhatti

EVP(F&A) ZTBL

Member

Mr.Javed Akhtar
AEVP(Services) ZTBL

Member

bp
http://wps.prenhall.com/bp_david_sm_12/87/22399/5734354.cw/inde
x.html
mcm
http://www.mhhe.com/business/finance/sc1e/ppt.mhtml

54

Zarai Taraqiati Bank Limited

http://highered.mcgrawhill.com/sites/0073382299/student_view0/chapter1/multiple_choice_
quiz.html
http://business.fullerton.edu/finance/jgreco/
http://highered.mcgraw-hill.com/sites/0073523097/student_view0/
http://www.bauer.uh.edu/hhwang/FINA%204332/FINA4332.2.html
http://wps.prenhall.com/ca_ph_kotler_marketman_11/11/2905/74368
2.cw/index.html

55