ACD
Circular No. 02 of 2010 |
August 11, 2010 |
|
The Presidents / Chief Executive Officers
All Banks
Dear
Sir / Madam,
Streamlining
of Agricultural Lending Procedures and Documentation
Please
refer to ACD circular No. 5 dated, August 11, 2003
regarding standardization and simplification of agricultural
credit documents.
In order to ensure timely
disbursement of Agri Credit to the farming community,
SBP in consultation with banks has revised the list
of documents to be obtained against various kinds
of agri. loans and streamlined the turnaround time
for Agri Loan processing (Annexure I, II & III).
Further, to strengthen the existing agri. lending
structure and remove lapses in agri. loan management,
banks are advised to take following measures by
31st December, 2010:-
• Develop a comprehensive Agriculture Finance
policy in line with PRs duly approved by their Board
of Directors.
• Set up and maintain a fully dedicated Agri.
Finance Department/Division/Unit equipped with qualified
agri. financing experts and officers with specified
job responsibilities and career progression opportunities.
• Develop an overall annual regional agricultural
portfolio plan and assign targets for disbursement,
growth in outstanding portfolio & number of
borrowers to respective agri. designated branches.
The concerned Regional Business Chiefs or Area Heads
to be made responsible for the achievement of the
targets.
• Number of agri. designated branches and
Agricultural Credit Officers to be increased significantly
in a phased manner, in proportion to the overall
credit portfolio of the area and potential of agricultural
activities.
• Delegate adequate powers to each agri. designated
branch or its nearest Zonal or Area office for sanctioning
small agri. loans with requisite internal control
functions in place.
• Launch financial literacy program for awareness
of the farming community about agri. lending products
/ schemes of the bank.
• Provide the field functionaries necessary
logistics, communication and other facilities to
ensure timely delivery of services including spot
verification, processing, disbursements, follow-up
and recovery.
Banks are advised to strictly comply with the above
instructions and maintain proper record for inspection
purposes. SBP and its field offices (SBP-BSC) will
also monitor the compliance on regular basis.
Please acknowledge receipt.
Encl: As above
|
Yours
faithfully,
(Kamran
Akram Bakhshi)
Senior Joint Director
|
|
|
|
|