DOHA: Local banks are still treading with caution in disbursing loans despite the massive financial backup the state has provided to help them ride over any possible impact of the global financial crisis.

Figures available for the first three quarters of this year suggest that lending by the Qatari banks has grown only 10 percent in the last quarter (July to September). Contrast this to the yearly growth in bank lending last year which was an incredible 52 percent, the highest being in the first quarter (Q1 of 2008) at 61 percent.

The average growth in lending in the nine months this year has been a little over 13 percent, the maximum being in the first quarter at 18 percent.

There has been a progressive decline in the rate of growth in loan disbursal from 18 percent in Q1 to 12 percent in Q2 to 10 percent in Q3 this year. The drop is surprising since the banks have received billions of riyals from the government in bailouts.

It is important to note that personal loans account for a lesser percentage in the overall lending portfolios of these banks as compared to last year.

A study conducted by company ARQAM, the country’s largest lender Qatar National Bank has witnessed barely three percent growth in its lending portfolio in the three quarters this year.

The growth has been negative as far as Commercialbank is concerned, while Doha Bank has seen a growth of six percent, Qatar Islamic Bank, 25 percent. But the largest growth has been shown by Alkhaliji (69 percent) and Masraf Al Rayan (64 percent) as compared to last year.