Zarai Taraqiati Bank Limited (ZTBL)

Introduction:-
Zarai Taraqiati Bank of Pakistan is the largest agriculture bank in the country. It
has many branches in all over the country. The bank has multi services and investment
plans to development of agriculture in country.

Corporate Vision:
Dedicated to serve the needs of the farming community, by delivering financial
products and technical services on a competitive and sustainable basis, in a convenient,
efficient and professional manner, leading to success of the Bank and the farmers.

Corporate Mission:
To play effective role in the promotion of economic growth, by enhancing the
availability of credit to the agriculture sector, through reliable access to sustainable
financing, special lending programs, technical assistance, and other products & services,
and to promote career development opportunities for increasing professionalism and
technical proficiencies of employees.

Corporate Objectives:
 Develop and operate as a financially and operationally sustainable R.F.I of the country.

 Assist rural community, particularly the small farmers, in raising their productivity and
income levels through timely delivery of credit, advisory and ancillary 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 agriculture 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.

History:
Pakistan is basically an agricultural country, and finance has been needed for its
rapid development. With a view to meet this basic need the Agricultural Development
Finance Corporation was set-up in 1951, and was entrusted with the task of providing
financial facilities for the development and modernization of agriculture, including:

• Forestry,
• Fishery,
• Animal Husbandry,
• Poultry,
• Dairy Farming.

Later on the Agricultural Development Bank of Pakistan was also established in

September 1957, under the Agricultural Development Bank Act. The Bank is to provide
credit in cash or in kind, warehousing and storage facilities to agriculturists, cooperative
societies and other bodies, of which the majority of members are agriculturists.

As the functions of the Agricultural Development Finance Corporation and

Agricultural Development Bank were similar and since both were working with capital
provided by the Government, they were merged into one organization known as
Agricultural Development Bank of Pakistan on February 18. 1961. The Agricultural
Development Bank of Pakistan is a banking company for the purpose of the Banking
Companies Ordinance and the State Bank of Pakistan Act.

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.
♦ 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

Reason to Change ADBP to ZTBL:-

The restructuring of the 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 the income generating capacity of the farming community.

Credit Rating:
Credit rating of ZTBL is very excellent from last year. Their credit rating is
“AAA” medium to long term.

Current Scenario:
ZTBL are going to commercialized in future. 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 agricultural financial services through Intermediations under public
private participation and whole-sale -retail lending mechanism.
Management Hierarchy:
The general direction and superintendence of the affairs of the bank are entrusted
to a 12 members Board of Directors consisting of a chairman appointed by the Federal
Government, the Federal Government officers from the Ministries of Finance and Food
and Agriculture. Four officers of the four Provincial Governments and one non official
nominated by each province. One member on this board represents the State Bank of
Pakistan also.
In ZTBL, the president supervises and directs the senior executive who supervises
and directs the senior voice president, and senior voice president control voice president,
who control Assistant voice president, who finally supervise officers. The management
hierarchy of bank is as follows;
 President

Senior executive

Senior vice President

Vice President

Assistant vice

Officers

Earlier the bank was functioning like a pure government institution and permission
has to be sought on every step for moving forward.
“Now the bank management board will be fully empowered to run the affairs of
the ZTBL”
More than 2,000 employees of the bank have opted for Voluntary Golden Hand
Shake Scheme, offered by the bank to its employees.
Bank has established a task force for improving the operational performance of the staff
and it was monitoring the disbursement, recovery operations and performance of field
functionaries. The task force comprised 10-15 officers and each officer will head a desk
exclusively to monitor 3-4 regions. This task force will be responsible to evaluate
performance of each MCO, Manager and Regional Manager on the achievement of bank’s
policies regarding credit and recovery periodically.

Capital Structure of Zarai Taraqiati Bank Limited (ZTBL):-

ZTBL was incorporated as a Public Limited Company on 14th December, 2002
through repeal of ADB Ordinance of 1961. Thereby transforming the bank as a corporate
entity to serve as a R. F.I
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 a nation-wide working
strength comprises 5500 employees. The share of ZTBL in total national institutional
agricultural credit remains around 35%.
Authorized capital of Zarai Bank is Rs 25 billion, comprising 2,500 million
ordinary shares of Rs 10 each. As on December 31, 2005 the paid up capital was Rs
11.870 billion, almost all of which is owned by the Federal Government, leaving token
ownership to all the Provincial Governments.
In its report of June 22, 2005 JCR-VIS has re-affirmed the medium to long term
entity rating of "AAA" (Triple A) with a "Stable" outlook and short term rating of "A-1+"
(A-One Plus) assigned to Zarai Bank. It has also re-affirmed the rating assigned to it on a
stand-alone basis i.e. the medium to long term rating of "BB+" (Double B Plus) with a
"Stable" outlook and the short term rating at "A-3" (A-Three).
Zarai Bank alone serves around 0.5 million farmers annually and reportedly shares
over 50% of the institutional credit. The bank provides loans, for a wide range of
investment activities encompassing tractors, implements, irrigation, horticulture, livestock,
fisheries and for production category (seed, fertilizers, pesticides). The bank is trying to
recover its stuck up loans so that these can be recycled to the agriculture sector.

Summary of data for 2004 and 2005 is presented below:

Operations (Rs in million)

2005 2004

1- Disbursements: 39,356 33,715

a- Production Loans: 85% 84%

b- Development Loans: 15% 16%

2- Share of Small Farmers: 85% 86%

(Under 25 acres)

3- No of Borrowers: 441,536 462,785

4- Amount Recovered: 42,144 38,945

a- Past dues: 5,884 5,824

b- Current Dues: 36,260 33,120

c- Recovery Rate: 57% 54%

Total assets of Zarai Bank were at Rs. 84 billion on December 31, 2005 (2004: Rs
84 billion). On December 31, 2005 Investments increased 350% to Rs 12.8 billion (15%
of Total Assets) compared to Rs 2.8 billion (3% of TA) as on December 31, 2004. Increase
in investments was due largely to reduction in cash balances. Of the total, Zarai Bank has
97% investments in Held to Maturity Securities (2004: 92%).
Zarai Bank's Advances as on December 31, 2005 were Rs 52.9 billion (63% of
Total Assets), registering 3% decline from 2004 Advances at Rs 54.3 billion (65% of TA).
On December 31, 2005, 100% Advances (2004: 100%) are in local currency, while 62%
(2004: 39%) of the total Advances are for short term. The Advances and Investments as on
December 31, 2005 have been largely financed through borrowings from the SBP (Rs
51.257 billion) and Deposits (Rs 2.645 billion).
Zarai Bank's equity including Surplus on Revaluation of Assets on December 31,
2005 stood at Rs 13.062 billion (16% of Total Assets) whereas gross NPLs on this date are
Rs 23.424 billion (2004: Rs 40.465 billion). In percentage terms gross NPLs for 2005 are
36% of gross Advances (2004: 51% of GA). Zarai Bank has made full provision against
NPLs according to the SBP criteria.
 On re-organization and conversion (of ADBP) into a public limited company, the
SBP got carried out a portfolio audit through Chartered Accountants who recommended a
provision of Rs 10 billion against its NPLs to meet the requirements of the SBP Prudential
Regulations.
On the basis of provisional portfolio audit Report, Zarai Bank incorporated a
provision of Rs 3 billion for year ended June 30, 2002. The GOP approved a cash support
of Rs 7 billion which will be provided to Zarai Bank over a period of three years. The final
amount of total provision is being worked out.
Total revenues of Zarai Bank for 2005 decreased by 16% to Rs 6.823 billion
compared to Rs 8.105 billion for the previous year. Net interest income (after provisions)
for 2005 experienced 37% decrease to Rs 1.687 billion (2004: Rs 2.658 billion). The
origin of the significant fluctuations in the overall income, expenses and profits of the
bank lies in the Presidential Relief Package 2004 announced on June 10, 2004, the
proposed revision in the pricing of the SBP loans to the bank under the financial
restructuring process and higher provisioning for 2005 at Rs 4.744 billion (2004: Rs 2.311
billion).
The Relief Package extended up to December 31, 2005 was meant for borrowers
of agricultural loans up to Rs 0.5 million and involved benefits such as settlement at 50%
of outstanding amount, special package for the borrowers of Balochistan, and reduction of
mark up rate from 14% to 9% with further rebate of 1% on regular loans. The GOP has not
yet finally settled the claim from Zarai Bank for the reduction of income/assets on account
of the Relief Package. Also, the matter of re-pricing of the SBP loans (main source of bank
funding) is still under consideration.
Non-mark up income of the bank for 2005 was lower at Rs 0.838 billion as against
Rs 0.955 billion for 2004. Zarai Bank's non-funded to funded income ratio improved to
33% in 2005 from 26% in 2004.
The year 2005 was closed with After-tax Loss of Rs 129 million (2004: After-tax
Profit, Rs 664 million). ROE for the year is negative 1% (2004: 5.1%). The matters under
consideration with the GOP as well as the SBP, mentioned earlier, are expected to be
resolved during 2006. The bank appears to be gearing up for achieving better results in the
coming years. Performance statistics are given below.
Performance Statistics
Balance Sheet (Audited) (Rs million)
As on Dec. 31, 2005 2004
Total Assets: 83,848 83,930
Cash, balances with banks: 9,399 16,385
Lending to financial institutions: 0 0
Investments-Net: 12,821 2,850
Advances-Net: 52,925 54,335
Borrowing from fin. Institutions: 51,257 51,257
Deposits, other accounts: 2,645 3,122
Total Liabilities 70,786 70,846
Net Assets: 13,062 13,084
Share Capital: 11,870 11,870
Reserves, Un-app. Profit: 947 1,077
Total Equity: 12,817 12,947
Surplus on Revalue, Assets: 245 137
Equity incl. Revalue Surplus: 13,062 13,084
Subordinated Loan: 3,204 3,204
Equity and Sub. Loans: 16,266 16,288
Advances-Gross: 64,744 79,902
Gross NPLs: 23,424 40,465
Total Provision: 11,819 25,567
Conting. & Commitments: 12,806 11,954
Ratios:
Cash & bank/Total Assets: 11% 20%
Investments/Total Assets: 15% 3%
Advance-Net/Total Assets: 63% 65%
NPLs/Advances-Gross: 36% 51%
NPLs Net/Advances Net: 22% 27%
NPLs/Total Equity: 183% 313%
NPLs Prov./Advances-Gross: 18% 32%
Deposits/Total Assets: 3% 4%
Total Liabilities/Total Assets: 84% 84%
Total Equity/Total Assets: 15.6% 15.6%
Equity & S. Loans/Total Assets: 19.4% 19.4%
Deposits/Equity-Times: 0.2 0.2
Advances/Deposits: 2001% 1740%
Investments/Deposits: 485% 91%
Contin.& Comm./Equity-Times: 1.00 0.92
Book Value Per Share: 10.80 10.91
Income Statement 2005 2004
Markup-interest earned: 6,823 8,105
Markup-interest expensed: 392 3,135
Net Markup-interest income: 6,431 4,970
Provisions and write offs: 4,744 2,312
Net mark up after provisions: 1,687 2,658
Total non-markup income: 838 955
Income before Admn. Exp.: 2,525 3,613
Admin Expenses, etc: 2,616 2,446
Profit before Taxation: -91 1,167
Current & deferred tax: 38 503
Profit/(Loss) after taxation: -129 664
Ratios: (Annual Basis)
Markup earned/Total Assets: 8.1% 9.7%
Net Markup Income/T. Assets: 7.7% 5.9%
Net markup (aft. Prov.)/TA: 2.0% 3.2%
Non-Markup Income/TA: 1.0% 1.1%
Income before AE/TA: 3.0% 4.3%
Admin Expenses/TA: 3.1% 2.9%
Profit before Taxation/TA: -0.1% 1.4%
Profit after taxation/TA: -0.2% 0.8%
Profit/(Loss) aft. Tax/Total Equity: -1.0% 5.1%
EPS-(year-end paid up) - Rs: -0.11 0.56
Cash flow Summary 2005 2004
Net Cash flow, Operations: 2,881 4,331
Net Cash flow, Investing: -9,867 -90
Net Cash flow, financing: 0 0
Change in Net Liquidity: -6,986 4,241
Net Liquidity at beginning: 16,385 12,144
Net Liquidity at end: 9,399 16,385

Branches of Zarai Taraqiati Bank Limited (ZTBL):-

Head Office: 1 Faisal Avenue
P.O. Box No. 1400.
Islamabad, Pakistan
Phone No. +92-51-9252805
Email Address: contactus@ztbl.com.pk

Total Branches in Punjab = 159

 Islamabad
o Total Branches = 18

 Lahore
o Total Branches = 19

 Sargodha
o Total Branches = 15

 Faisalabad
o Total Branches = 21
  Gujranwala
o Total Branches = 18

 Sahiwal
o Total Branches = 15

 Vehari
o Total Branches = 11

 Multan
o Total Branches = 07

 Muzaffargarh
o Total Branches = 11

 D.G. Khan
o Total Branches = 06

 Bahawalpur
o Total Branches = 12

 R.Y. Khan
o Total Branches = 06
Total Branches in N.W.F.P = 62
 Peshawar
o Total Branches = 20

 D.I. Khan
o Total Branches = 14

 Mingora
o Total Branches = 15
  Abottabad
o Total Branches = 13

Total Branches in Sindh = 89

 Karachi
o Total Branches = 15

 Hyderabad
o Total Branches = 14

 Nawabshah
o Total Branches = 13

 Sukkur
o Total Branches = 15

 Larkana
o Total Branches = 18

 Mirpur Khas
o Total Branches = 14

Total Branches in Balochistan = 32

 Quetta
o Total Branches = 18

 D. M. Jamali
o Total Branches = 07

 Turbat
o Total Branches = 07
Development loans:
Those types of loans which are advanced for the purchase of items like farm
machinery/tractors, irrigation, land development, orchard/green houses, on-farm
godowns/storages, dairy, poultry, fishery, livestock farming and are recoverable period
exceeding 18 months.

Development Loans:
Installation of tube wells (including cost of power lines upto 8 poles and
transformer/Ancillary structure.
Pumping sets/lift irrigation pumps (including peter engines) Open Wells
Purchase of improved farm machinery (including tractors,, power tillers,
implements, cutter binders (reaper wind rover), threshers, trolley, spraying equipment,
cane crusher and miscellaneous agricultural equipment, tractor pulled harvesters, self
propelled combines.
Production Loan:
Those types of loans which are advanced for seed, fertilizer, pesticides, labour
charges and POL etc. to grow crops and vegetables including working capital for poultry,
dairy, orchard, fishery and are recoverable within 18 months.

Production/Seasonal Loans Items:

Seeds
Fertilizers
Pesticides/Insecticides, Herbicides (Feticides) Manual Sprayers
Sairab Scheme:
Despite technological advancements and rapid growth of industrial sector,
agriculture is still the back bone of Pakistan’s economy. It contributes towards GDP and
employs nearly 45% of country’s labor force. It provides raw material for industrial
products. So it has both pull & push effect economy. Water plays vital role to improve per
acre yield. Out of total million hectors area of Pakistan, 22 million hectors is cultivated
while million hectors is cultivable waste mainly due to non-availability 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 Tube wells
amounting to Rs. 15 billion. For raising irrigated area to accelerate the economic growth
and to facilitate. Farmers ZTBL has signed collaboration agreement with M/s KSB Pumps
Company Limited (Company) on 28 May, 2007
ZTBL will disburse Rs.6 billion to the farmers for installation of
30,000Tubewells/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 25%
Contribution
Cost of Credit:
LA Form Rs. 20/-
Postal RS. 50/- P.A.
Charges
Appraisal Fee 1%
Mark-up
9% PA with 1% rebate on timely Repayment

Recovery Period
5 years in half yearly installments with
one year grace period
Maximum Loan
Rs. 1 Million per case Limit

White Revolution:
 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 partnership between ZTBL and MIs. 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:
i. The company shall recommend good dairy farmer to ZTBL and send the
loan request to the bank along with necessary documents.
ii. The concerned branch of the bank will process the case as per prescribed
procedure of the bank.
iii. 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. iv.
There would be maximum limit of loan of Rs. 1 million per borrower/party
• 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 Pèshawar zones and its expansion would be made gradually.
• 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.
Repayment Periods
S.No. Types of Loans Recovery Period
Crop production working capital loans
1 Short Term Loans recoverable in lump sum commencing after the
harvest/marketing of respective crops and
within Maximum period of 12 months.
2 Medium Loans Dairy farming and livestock etc. In yearly/half
Term yearly/monthly installments and within
Maximum period of 5 years. Long Tractors,
agricultural machinery, poultry farming,
 godowns
3 Term Loans and orchard UN yearly/half yearly installments
within maximum period of 8 years and. above.

Supervised agriculture 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, tube well 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.

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. 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.

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:
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.

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 socio-
economic condition of the inhabitants of the area. The salient futures 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 within 1 year 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.

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 will be applicable.
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 vs. favor 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
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 case basis and is to be
allowed on borrowers 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 Rate of down payment as against due
Number installments to be rescheduled
1st 10%
2nd 20%
3rd 30%
Types of Security:
1 Immovable Property
2 Movable Property
3 Personal Sureties

Problems
Area/location:
The location of ZTBL is not easily founded by every person because it is situated
in residential area, not in commercial area.

Loan facility:
Loan facility is not based on merit system; it is rather base on favoritism.

Corruption of revenue department:

There is problem in ZTBL that corruption of revenue department cause the great
influence in its performance. They have to find pitwari for advances the loan.

Political influence:
Govt. influence also effect the performance of ZTBL, as govt. influences the bank
to provide loan to those who has govt. favor. This may cause some bad effect as they are
not eligible for loan.

Current Scenario:
The ZTBL restructuring plan covering the following;
Governance: establish an environment that facilitates good governance and
accountability;

Systems: modernize operations through use of technology, networking, and

communication tools;

Business processes: streamline products and delivery systems so as to reduce

transaction costs, simplify operations, and increase outreach;

Products and services: introduce products and services that are financially
economically viable;

Human resource development: improve standards and skills of management and staff
and strengthen training capacity;

IT: establish new hardware and software platform to support MIS, accounting system
including forensic accounting, and risk management functions.
Conclusion
Part A
We were given a project on Zarai Taraqiati Bank of Pakistan. At very first step we
make plan how do we get their and what will we ask. Then we arrived at the Head office
based in Lahore at 9 am as per appointment to the regional manager. We were totally 6
students we start interview with the one of the operational manager to whom we were
referred by the regional manager. We ask questions about the Zarai Taraqiati Bank’s
history, introduction, capital, criteria of loan, criteria of eligibility and defaulter, we had
also asked question about the future of Zarai Taraqiati Bank and the Opportunities, and
threats. They give us all of the answers what we had ask from accept the branches and
capital history because they said that this information is easily available at Zarai Taraqiati
Bank Limited’s Web Site. After collecting all information that was needed to make our
project we gather data individually by dividing parts then we compile it together

Part B
Zarai Taraqiati Bank Limited (ZTBL) is the country’s largest agriculture bank that
was established in September 1957 with the named 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,
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. Authorized capital of Zarai Taraqiati Bank is
Rs 25 billion, comprising 2,500 million ordinary shares of Rs 10 each. As on December
31, 2005 the paid up capital was Rs 11.870 billion, almost all of which is owned by the
Federal Government, leaving token ownership to all the Provincial Governments.
The Zarai Taraqiati Bank Limited (ZTBL) provides development loans,
production/seasonal loans items, and have runed many schemes like supervised agriculture
scheme, zarkhaiz (one window operation), sada bahar scheme, tea financing scheme, crop
maximization project etc.
The Zarai Taraqiati Bank Limited has also some problems that is needed to be
solved some are; The location of ZTBL is not easily founded by every person because it is
situated in residential area, not in commercial area. Loan facility is not based on merit
system; it is rather base on favoritism. There is problem in ZTBL that corruption of
revenue department cause the great influence in its performance. They have to find pitwari
for advances the loan. Govt. influence also effect the performance of ZTBL, as govt.
influences the bank to provide loan to those who has govt. favor. This may cause some bad
effect as they are not eligible for loan. The Asian Development Bank has block aid for
ZTBL now they hasn’t enough source to provide much loans. Due to market values of
agriculture farmers are willing to leave this field because they don’t get enough revenues.
Employees and managers are very co-operative ZTBL act as a financial source for
small group of farmers and tenants. They invest in different fields like input, tractors,
fishery and dairy farms according to area. They provide services at a very low markup.
Overall ZTBL is a good Financial Institution but its main problem is corruption in
Revenue Department.
ZTBL has a aim to facilitate the farmer. It is a Government Financial
Institution which is nonprofit organization. They are going to commercialized to extend
their facility.