THE Land Bank of the Philippines increased its lending to priority sectors in the third quarter, particularly for agriculture-related projects, the state-run financial institution said.

In a statement, Landbank revealed that loans to its priority sectors reached P117.5 billion as of end-September 2009.

This was 18 percent higher that the P99.5 billion recorded a year ago.

The increase in the bank?s priority sector loans was primarily driven by higher lending to agriculture-related projects of government owned and controlled corporations (GOCCs); agri-infrastructure projects of local government units (LGUs); loans to micro and small and medium enterprises (SMEs); as well as for schools and hospitals.

?We have intensified our credit assistance to agricultural, livelihood, and agri-infrastructure projects that will benefit more communities in the rural areas,? bank president and CEO Gilda E. Pico said.

?Moreover, Landbank continues to step up its efforts to help more of our priority clients that were affected by the recent calamities,? she said.

The bank?s loans for agriculture-related projects of GOCCs expanded as of end-September 2009 to P24.5 billion from P16.9 billion.

Lending to agri-infrastructure projects of LGUs grew to P23.3 billion from P18.8 billion last year.