A LOCALLY EMBEDDED

INTERNATIONAL BANK
Pakistan
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]

Submitted By:
Bilal Yasir
+92345-8703330

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 Standard Chartered [MONE
Bank Y BANKING & FINANCE]

STANDARD CHARTERED BANK (PAKISTAN) LIMITED - A LOCALLY

EMBEDDED INTERNATIONAL BANK

OVERVIEW
Standard Chartered was formed in 1969 through a merger of two banks: The
Standard Bank of British South Africa, founded in 1863, and the Chartered Bank
of India, Australia and China, founded in 1853.
Both companies were keen to capitalize on the huge expansion of trade and to
earn the handsome profits to be made from financing the movement of goods
between Europe, Asia and Africa.
The Chartered bank was founded by James Wilson following the grant of a Royal
Charter by Queen Victoria in 1853. Chartered opened its first branches in
Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and
Singapore in 1859.

The Standard Bank was founded in the Cape Province of South Africa in 1862 by
John Paterson. It was a commenced business in Port Elizabeth, in January 1863.
It was prominent in financing the development of the diamond fields of
Kimberley from 1867 and later extended its network further north to the new
town of Johannesburg when gold was discovered there in 1885. It expanded in
Southern, Central and Eastern Africa and, by 1953, had 600 offices. In 1965, it
merged with the Bank of West Africa, expanding its operations into Cameroon,
Gambia, Ghana, Nigeria and Sierra Leone.

From the early 1990s, Standard Chartered has focused on developing its strong
franchises in Asia, Africa and the Middle East. It has concentrated on consumer,
corporate and institutional banking and on the provision of treasury services -
areas in which the Group had particular strength and expertise.
STANDARD CHARTERED BANK IN PAKISTAN:

YEAR OF SETUP

Standard Chartered is the largest international Bank in Pakistan. In Pakistan it

established operations in Karachi in year 1863. In 2006 Standard Chartered Bank
acquired Pakistan's Union Bank. On 30 December 2006, Standard Chartered
merged Union Bank with its own subsidiary. After the acquisition of Union Bank
the new entity Standard Chartered Bank (Pakistan) Limited was incorporated as
a subsidiary of Standard Chartered PLC. Standard Chartered Bank (Pakistan), to
create Pakistan's sixth largest bank.

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NUMBER OF BRANCHES
The bank has a network of over 174* branches in 41 cities in Pakistan adding
154 branches and 33 cities over last four years. Standard Chartered employs a
workforce of over 9,000 employees in its Pakistan operations. Standard
Chartered Bank has a network of over 200 ATMs across Pakistan. Standard
Chartered has a network of over 1,600 branches and outlets and 5,500 ATMs in
more than 70 countries and territories across the globe, making it one of the
world's most international banks.
PERFORMANCE
As one of the world's most international banks, Standard Chartered employs
70,000 people, representing with 125 nationalities, worldwide. This diversity lies
at the heart of the Bank's values and supports the Bank's growth as the world
increasingly becomes one market.
With strong organic growth supported by strategic alliances and acquisitions and
driven by its strengths in the balance and diversity of its business, products,
geography and people, Standard Chartered is well positioned in the emerging
trade corridors of Asia, Africa and the Middle East.
Standard Chartered derives over 90 per cent of profits from Asia, Africa and the
Middle East. Serving both Consumer and Wholesale Banking customers
worldwide, the Bank combines deep local knowledge with global capability to
offer a wide range of innovative products and services as well as award-winning
solutions.
Trusted across its network for its standard of governance and corporate
responsibility, Standard Chartered takes a long term view of the consequences
of its actions to ensure that the Bank builds a sustainable business through
social inclusion, environmental protection and good governance.
Standard Chartered is also committed to all its stakeholders by living its values
in its approach towards managing its people, exceeding expectations of its
customers, making a difference in communities and working with regulators.
Standard chartered bank is the first international bank to get an Islamic banking
license and to open the first Islamic banking branch in Pakistan.
CREDIT RATING
Pakistan Credit Rating Agency (PACRA) has maintained the Bank’s long-term and
short-term ratings “AAA” (Triple A) “A1+” (A One Plus) respectively in 2008. The
Bank’s outstanding two listed, subordinated TFCs are also assigned “AAA” rating.
These ratings denote the lowest expectation of credit risk emanating from an
exceptionally strong capacity for timely payment of financial commitments.

EXTERNAL AUDITORS
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The audit committee has suggested the name of M/s KPMG Taseer Hadi &
Company, Chartered Accountants as external auditors of the bank for the next
term. The retiring auditors, being eligible, offer themselves for re-appointment
till the conclusion of next Annual General Meeting.

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ORGANIZATIONAL STRUCTURE
ORGANOGRAM OF STANDARD CHARTERED BANK

BALANCE SHEET

BALANCE SHEET ANALYSIS

Pakistan's banking sector has remained remarkably resilient, despite pressures
emanating from weakening macroeconomic environment. Enhanced capital
requirement since last couple of years has resulted in consolidation within the
industry which we expect to continue in the near future. Capital adequacy of the
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banking system was 11.8% at end-Sep'08. Tier 1 capital ratio of the banking
system was 9.7%. However, challenges remain in terms of NPLs emanating from
some of the more leveraged sectors.
Total assets of the bank grew to PKR 264.6 billion from last year's PKR 255.5
billion mainly due to increased lending in wholesale banking. Total net loans and
advances increased by approximately 5% to PKR 125.60 billion from PKR 119.54
billion while deposit base was marginally reduced by 1.5% to PKR 174.5 billion
compared to PKR 177.2 billion last year. The bank continues to maintain
adequate liquidity. The advances to deposit ratio as at December 31, 2008 was
72%.

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PROFIT AND LOSS ACCOUNT

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PROFIT AND LOSS ACCOUNT ANALYSIS:

Overall revenue of the Bank grew by 3% to PKR 23.0 billion for the year ended
December 31, 2008 as against PKR 22.3 billion in 2007. Net Mark-up / Interest
income of PKR 16.4 billion was marginally higher than last year. Wholesale
banking Net Mark up / Interest income was 57% higher than last year primarily
due to an increase in its advances portfolio. This growth was offset by a
reduction in the consumer banking interest income as at December 31, 2008.
Consumer banking advances has reduced primarily due to the decision of the
bank to be extra prudent on both secured and unsecured products.
Non mark-up / interest income was 8% higher than last year primarily due to
increase in Consumer banking income on account of value added Wealth
management products. Despite double digit inflation and significant investment
in technology, branch network and infrastructure, non mark-up expense have
increased only by 4% to PKR 12.62 billion compared to last year PKR 12.16
billion. In line with our growth strategy the distribution network was further
enhanced by 33 branches. Total network now stands at 174 branches in 41 cities
compared to 141 branches last year. For convenience of our customers 40 ATMs
and 6 Cash Deposit Machines (CDM) were also added during the year under
review.
Profit after tax of the current year was PKR 630 million resulting in basic/diluted
earnings of PKR 0.16 per share.

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PRODUCTS

PERSONAL  CREDIT &

DEBIT CARDS • Other Financial • Tahaffuz
Services
BANKING  Credit Cards • Banking
• Invest 'n'
Assure
 ACCOUNTS & Convenience • Iqra Education
• Master
DEPOSITS Cashback Credit • Rewards and Plan
Cards Privileges • Family Care
• • Priority Center •
 Savings Accounts Saadiq VISA Cash Cover
Credit Cards Locations Plus
• Saving Account
• MasterCard  LOANS &  For Credit Card
• Supersave
Account • VISA Card MORTGAGES Customers
• High Yield • Easy Credit Card • Smart Wallet
Account • American  Mortgages • Cover for Life
• Easy Saver Express Credit • Home Purchase • Credit Cover
Account Cards • Home Credit Plus
• Bonus Saver • American INVESTMENTS
 Loans 
Account Express Charge
Card • Ready Cash • Mutual Funds
• Flex Account
• Swift Finance Basics
• PIA Co-branded
• Mahana Izaafa
Credit Card  Mutual Funds
 Current Accounts
 INSURANCE
 Debit Cards Offered
• Basic Banking • JS ABAMCO
• VISA Shopping  For Branch
Account Limited
Card Plus Banking
• Rupee Current • National
• Treasures Customers
Account Investments
Catalogue • Secure Life
• Xtra Mile Trust Limited
 PRIORITY Plan
Account • Atlas Asset
BANKING • Mustaqbil Management
• Foreign
Currency • The Right • Taleem Limited
Accounts Partner • Rishtey • Arif Habib
• Business Investments
• Product
Account Management
Proposition
Limited
• Sahulat Online • Visa Platinum
Account • BMA Asset
Debit Card
Management
• Corporate
Limited
Salary Account

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Bank
• Rupee Term
Deposits
• Interest Rates
• Mahana
Amdani
Certificates
• Overdrafts
• Lockers
ISLAMIC BANKING WHOLESALE
BANKING
 Accounts & Deposits
• Saadiq Current Account
• Saadiq Sahulat Online
Account
• Saadiq Saver
• Saadiq Term Account
 Loans and Mortgages
• Saadiq Home Financing
 Credit & Debit Cards
• Saadiq VISA Credit Cards
• Saadiq VISA Shopping Card
 Modaraba
• Modaraba
[MONE
Y BANKING & FINANCE]
• KASB Asset
Management
Limited
SME BANKING
Business Accounts
• Tijarat Classic Account
• Transaction
banking • Tijarat Plus Account
Trade and Working Capital
• Financial Markets • Business Power
• Cash Today
• Corporate Finance Loans
• Business Installment Loan
• Principal Finance Industry Specific Solutions
• Kissan Card
• Rang Hi Rang
• Tana Bana
• Pharma Line
• Agri Deal
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EXPLANATION OF CERTAIN IMPORTANT ACCOUNTS

➢ SAVING ACCOUNT:
Saving Account is the latest addition to Standard Chartered Bank Pakistan
Limited’s ever increasing portfolio of products. This product combines a good
rate of return, profit paid out on a six-monthly basis, and outstanding services
offered by Standard Chartered Bank Pakistan Limited all-in-one.

Special Features

Exclusive benefits of a Saving Account:

• Profit tier rate
• 5% p.a APY
• Minimum average balance requirement is Rs. 100,000
• Inter-branch transaction facility among 162 branches across Pakistan
• Customer Contact Center
• Profit calculated on a minimum balance basis

➢ BASIC BANKING ACCOUNT

Enjoy an unmatched combination of high returns and liquidity. In addition, SCB
nationwide network of ATMs offers customer 24-hour convenience in withdrawing
your funds, ensuring that money works for them, as they would like it.

Special Features
• Current account, mandatory introduced by State Bank of Pakistan
• Non-profit bearing
• Minimum Balance Required: None
• Account Statements: Issued on annual basis
• Account closure: If balance is Nil for 180 days
• Fees: Maximum 2 free deposits & 2 free withdrawals allowed per
month. (Rs 100 will be charged after second transaction)

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➢ RUPEE CURRENT ACCOUNTS

For all customer day to day transactions, open a Current Account which offer
via 162 online branches and a reliable country wide ATM network. Get easy
access to funds as well as enjoy the privileges of having a Rupee Current
Account.

Special Features

• Local Currency Transaction account

• Non-profit bearing
• Minimum Balance Required: PKR 5000
• Features: Unlimited withdrawals and deposits
• Offerings: (1) Chequebook (2) VISA debit card for local currency accounts
• Following Self Service banking facilities provided at time of account opening:
• Internet Banking
• SMS Banking
• Phone Banking Services

➢ XTRA MILE CURRENT ACCOUNT

An Ideal solution for people who want a Transactional Account with cash
reward on fuel spend

Special Features

• Minimum Monthly Average Balance Requirement PKR 15,000

• Fuel Cash Back up to 30%
• Debit Card with no issuance fee
• Transactional convenience through the use of wide branch network and self
service channels

➢ BUSINESS ACCOUNT
Take customer business to soaring new heights with this account. Business
Account provides efficient, accessible and convenient transactional
capabilities of a world-class bank with highly competitive charges.

Avail of the best transactional convenience on Business Account:

• Highly transaction current account aimed at rewarding the customer for
their higher average balance maintained
• Non-profit bearing
• Minimum Balance Required: Rs. 100,000

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• Features: Unlimited withdrawals and deposits

• Offerings: (1) Chequebook (2) VISA debit card for Local Currency
accounts

➢ STANDARD CHARTERED SAADIQ PAKISTAN

Standard Chartered Saadiq, was established as a dedicated Islamic Banking
Division within Standard Chartered Bank (Pakistan) Limited with an aim to
meet the unique needs of its customers
Standard Chartered Saadiq comprises a team of qualified professionals who
design and structure Islamic financial solutions and ensure that they are in
line with Shariah principles on Islamic banking and finance
At Standard Chartered it is realized that customers want products that are
Shariah compliant, and by introducing these Islamic financial solutions, we
are fulfilling our promise of being responsive to our customer needs. These
products have been developed under the guidance of a dedicated Shariah
Advisor
➢ TIJARAT CLASSIC ACCOUNT
Tijarat Classic Account is a business account designed for small businesses
with high number of transactions. Its low costs of transactions enable small
businesses to conduct their transactions without worrying about the costs.
With a minimum account balance of just Rs. 25,000/- avail free online banking
facility up to a maximum of Rs. 1.5 Million a day, Tijarat Classic Account offers
low cost, convenient and countrywide transaction capability.

➢ SUHALUT ONLINE ACCOUNT

Sahulat Online Account has been designed to provide efficient, accessible and
convenient transactional capabilities of a world-class bank with highly
competitive charges.
Special features
• Non-profit bearing/Local Currency Account
• Minimum Balance Required: Rs 50,000
• Charges: PKR 50 will be charged if Monthly Average Balance not
Maintained

AVERAGE LENDING RATE OF STANDARD CHARTERED BANK OF PAKISTAN IS

16.33%

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DEPOSITS & ADVANCES:

DEPOSITS

Deposits from notes to the consolidated financial statements shows that fixed
deposits increased as of saving deposits increased similarly, Current account
decreased but as we make conclusion out of it, deposits of 2007 was greater as
compared to deposits of year 2008.

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Deposits of group companies increased but subsidiaries companies’ decreases in

year 2008 as you see above in balance sheet for both years.

ADVANCES
Advances are stated net of provision against non-performing advances. Specific
and general provisions are made based on an appraisal of the loan portfolio that
takes into account Prudential Regulations issued by SBP from time to time.
Specific provisions are made where the repayment of identified loans is in doubt
and reflect an estimate of the amount of loss expected. The general provision is
for the inherent risk of losses which, although they have not been separately
identified, are known from experience to be present in any loan portfolio.
Provision made / reversed during the year is charged to the profit and loss
account and accumulated provision is netted off against advances. Advances are
written-off when there is no realistic prospect of recovery. When the Bank is the
lessor in a lease agreement that transfers substantially all of the risks and
rewards incidental to ownership of an asset to the lessee, the agreement is
presented within loss and advances.

Total net loans and advances increased by approximately 5% to PKR 125.60

billion from PKR 119.54 billion while deposit base was marginally reduced by
1.5% to PKR 174.5 billion compared to PKR 177.2 billion last year. The bank
continues to maintain adequate liquidity. The advances to deposit ratio as at
December 31, 2008 was 72%.
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INVESTMENT
One of the greatest myths about investing is that it’s only for the very wealthy.
The fact is that Mutual Funds have made it possible for anyone to invest, even if
it is a small amount. It is not how much you invest, but how you invest that
matters. The first step towards developing an investment plan is to understand
your needs. How long can you afford to stay invested, how much money you
need, how much risk you are comfortable with and what are your goals, are
some questions that need to be addressed at the onset.
With limited investment options and a booming but volatile stock market, what
is good for customer hard earned income is an important decision. Standard
Chartered Investment Services help with the decision, once again, a first such
service to be offered by any Bank in Pakistan.

Since 2004, Standard Chartered bank is the first bank to offer a diverse portfolio
of investment options to its valued customers. Offerings are designed to provide
customer with an opportunity to diversify his/her investments, minimize risk and
maximize returns!

Investment options can be categorized into:

1. Government Securities:
These are issued by Government of Pakistan and include Special Savings
Certificates (3 year investment) and Defense Savings Certificates (10 year
investment)

2. Mutual Funds:
Standard Chartered Bank has partnered with the leading investment houses of
Pakistan for distributing their mutual funds.

Mutual Fund Basics

A Mutual Fund is a pool of money that gives small investors access to a well-
diversified portfolio of equities, bonds, and other securities. Each shareholder
participates in the gain or loss of the fund. Shares are issued and can be
redeemed as needed (in the case of an open-ended fund). The fund's net asset
value (NAV) is determined each day. Each mutual fund portfolio is invested to
match the objective stated in its investment agenda.

• Equity Funds

An equity fund is one that is invested mainly in company equity through the
stock exchange and is exposed to the risk of volatility associated with the

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equity market. Although this fund is the riskiest within the genre of mutual
funds, it is also known to yield the maximum yields and dividends.

• Fixed Income Funds

A Fixed Income Fund is one that invests in avenues which offer fixed returns
over a set tenor. These funds are inherently linked to the general interest rate
and are, therefore, unlike the stock market, safe from drastic fluctuation. The
capital value is more easily sustainable while the returns are generally
modest. However, active fund management can yield returns which are
higher than most fixed income avenues in the market and therefore, it is an
attractive investment avenue for investors with moderate risk appetites.

• Money Market Funds

A Money Market Fund is one that invests in liquid, short-term avenues which
offer fixed returns over short periods. These funds are inherently linked to the
general interest rate and are, therefore, unlike the stock market, safe from
drastic fluctuation. Underlying investment may include securities issued by
corporate bodies, spread transactions, reverse-repo transactions, selective
exposure in the CFS market, Term Finance Certificates (TFCs) and commercial
paper.

• Balanced Funds

These funds maintain a mix within equity and fixed income markets. The
inclination of this mix will be dictated by the fund’s strategic intent and
mission statement. This fund offers more maneuvering room to its fund
managers as they have the option to switch between market types i.e. fixed
income avenues and capital markets. Effectively, the risk associated to this
category lies somewhere between that of equity funds and fixed income
funds and the returns also vacillate correspondingly between the ranges of
the two.

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The Bank classifies its investments as follows:

a) Held for trading

These are securities, which are acquired with the intention to trade by taking
advantage of short term market / interest rate movements and are carried at
market value. The surplus / deficit arising as a result of revaluation at market
value are taken to income.

b) Held to maturity
These are securities with fixed or determinable payments and fixed maturity
that are held with the intention and ability to hold to maturity. These are
carried at amortised cost.

c) Available for sale

These are investments that do not fall under the held for trading or held to
maturity categories and are carried at market value. The surplus / deficit
arising as a result of revaluation at market value is kept in a separate account
below equity.

d) Subsidiaries
Investments in subsidiaries are carried at amortised cost.

Investment by Segment

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BANKING INDUSTRY PROFILE:

Pakistan Banks’ Association (PBA) represents the Pakistan Banking Industry.

Established in 1953, its main objective is to coordinate the efforts of the banking
industry, and to share a common vision of progress and development with its
members.

PBA Membership is institutionalized and is available only to the Banks operating

in Pakistan. Currently there are 48 members, categorized into 6 groups (one of
these groups is under formation). Its governing body is an Executive Committee
(EC) comprising of 14 members, represented by the Chief Executives of the
respective member institutions. PBA’s Principal Executive is the Chairman of the
Executive Committee, elected periodically from within the EC. Presently, PBA has
10 functional Sub Committees, each chaired by a member of the Executive
Committee. Remaining members of the Sub Committees are relevant Executives
of member banks. Find more about PBA and its governance in the PBA Profile
Section. Particulars of members such as their corporate and management
profiles, branch networks and financial statements are available in the PBA
Members Section.

Over the years the role of PBA has broadened considerably. It is now referred to
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by the State Bank of Pakistan in formulation of regulations for the banking

industry, and has been entrusted with the function of regulating and monitoring
certain services provided to the banking industry by outside service providers.
These service providers include ‘Professional Valuers’, who are evaluators
allowed to appraise the values of assets collateralized to banks, and Security
Agencies offering security services to the Banking Industry. For details visit the
PBA Panels Section.

Pakistan Banks’ Association was constituted as a Private Limited Company on

31st March 1953.

Its controlling body is the Executive-Committee, which presently comprises of

fourteen members. Each member of the Executive-Committee is the Chief
Executive of a member Financial Institution.
The Executive-Committee is elected by the PBA members for a period of one
year. Now, the term of the Executive Committee runs from January 1 of the year
to December 31 of that year.
After appointment, the Executive-Committee members elect its Chairman and
two Vice Chairmen. The Chairman of the Executive Committee is the Chairman
of PBA. PBA Chairman is the Principal Executive of PBA.

The Executive Committee holds meetings on a regular basis to discuss, resolve,

and execute the ongoing issues put up to PBA. These meetings are usually held
once a month, but depending on the requirement, they are also held more
frequently.

Being a Private Limited Company, PBA also holds Annual General Meetings, and,
as per need, Extra Ordinary General Meetings to carry out business required to
be done therein under the law, and as required by its charter (Articles of
Association).

PBA has ten functional Sub-Committees to handle respective issues. The

Chairman of each Sub-Committee is a member of the Executive-Committee.
These Sub-Committees include the following:

• PBA Sub-Committee for Accounting and Taxation

• PBA Sub-Committee for Agricultural Finance
• PBA Sub-Committee for Basel II, Corporate Governance & Compliance

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• PBA Sub-Committee for Consumer Banking

• PBA Sub-Committee for Credit & Prudential Regulations
• PBA Sub-Committee for General Banking, Operations & I.T.
• PBA Sub-Committee for H.R. & Training
• PBA Sub-Committee for Islamic Banking
• PBA Sub-Committee for SME / NBFIS
• PBA Sub-Committee for Treasury & Capital Markets
These Sub-Committees meet as and when required to deal with the issues faced
by PBA on the particular aspects concerning the Sub-Committees.

PBA membership is open to the Financial Institutions operating in Pakistan. It

currently has 48 members. The members are broadly categorized into following
six groups:
• Nationalized Commercial Banks and Government Owned Banks
• Privatized Banks
• Development Financial Institutions
• Small and Medium Enterprise (group under formation)
• Private Banks
• Foreign Banks

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FUTURE OUTLOOK

A growing and dynamic banking sector is essential for economic growth in

Pakistan, as growth in the banking sector and the real economy mutually
reinforce each other. The banking sector constitutes the core of the financial
sector in Pakistan. Private sector investment and consumption should be seen as
the key drivers of the economy and must be supported by growing financial
intermediation and services, including not only banks but also non-bank financial
institutions, and debt securities and the stock market.

The growth in banking system has been driven by rise in deposits to Rs4.1
trillion and advances to Rs3.3 trillion. Banks as profitable ventures have
attracted close to over $4 billion of foreign direct investment during 2006-2008.
Almost half the assets of banks are now owned by foreign banks that are
introducing innovation and technological improvements. Recapitalization and
prudent lending supported by strong regulatory and supervisory framework have
lowered net non-performing loans to historical lows. In line with international
trends, SBP introduced Basel II and banks have higher capital adequacy levels
--well above the minimum level for the sector as a whole. Despite economic
shock and stress in stock market, the banking system in the first quarter of the
fiscal year 2009 has shown an increase in profitability of the banking system.
Central bank’s policies, regulations and supervision systems have been
substantially transformed and barring one area (i.e. noncompliance with
consolidated supervision principles progress on which is also underway) SBP
regulatory and supervisory framework is now in line with the international best
practices and norms.

Improved management brought high profitability, record low non-performing

loans (NPLs) and capital adequacy levels well above regulatory requirements.
Despite successful expansion in recent years, the banking sector continues to
have a large potential for further growth, diversification and financial
strengthening.

Deposit base rose to Rs 4.1 trillion and gross advances to Rs 3.3 trillion by
September 2008. Supported by the growing financial intermediation process,
banks’ aggregate profitability rose from Rs 63.3 billion in 2005 to Rs 73.3 billion
by 2007 and Rs 46.0 billion for half year 2008. Recapitalization and prudent
lending has lowered banks’ net non-performing loans (NPLs) to around 2.0
percent. Banks’ capitalization and quality of assets have helped raise the risk
weighted capital adequacy ratio to 12.1 percent, well above the regulatory
minimum of 8.0 percent.
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Agriculture lending has received a significant boost with the banking system
meeting its target of Rs 200 billion set for 2007/2008. This notwithstanding,
outstanding agriculture advances account for only 6% of total advances and the
current flow of credit meets only 45% of the sector’s credit requirements. SBP’s
strategy for agriculture credit seeks to double the number of borrowers from 2
million to 4 million and to meet 75-80% of the agriculture credit requirements
within 3 to 5 years.

SBP has encouraged a revolving three-year credit scheme under which farmers
can borrow for one year and continue to borrow without providing
documentation each year. Guidelines have been issued for lending to the
livestock, fisheries and horticulture subsectors and programs are being launched
for the dairy sector. In addition, a Small farmer special financing scheme has
been promoted based on group based lending and a Crop loan insurance
scheme has been structured which is now being offered by some insurance
companies. Agriculture credit based on Islamic principles will be promoted and
capacity building provided to farmers and bankers in regional languages.

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