June 5, 2024

With loan portfolio of over N700 billion, the Nigerian Deposit Insurance Corporation (NDIC) says  it will begin payment of insured sum to 2.3 million depositors of Heritage Bank in-liquidation this week.

The Managing Director of NDIC, Mr Bello Hassan, said this while briefing newsmen in Abuja on Wednesday.

Hassan said the bank had preliminary deposits of N650 billion and loan worth N700 billion.

According to him, 99.9 per cent of depositors of the defunct bank have a deposit balance of less than five million naira, while only 4,000 of the depositors have more than five million naira deposit.

He stated that the NDIC looks forward to ensuring the loan repayment within the next six months.

The NDIC MD said that all depositors are currently being verified for onward payment of insured benefit of five N5 million while depositors with insured deposits above N5 million naira will be paid upon the sale of the assets of bank.

The NDIC put the total depositors at the bank at 2.3 million with 99 per cent of them having total balances less than five million naira.

There are about 116 branches of heritage banks across the country.

The assurance of the payment by the NDIC will give hope to the customers of Heritage Bank who have been on packing mode following the revocation of the bank’s licence. 

According to him, customers with Bank Verification Number (BVN) will be paid without verification with the Corporation while those without BVN will visit the nearest NDIC office or website for their verification.

The managing director said that there was no need for depositors to panic as the Corporation would settle all insured deposits.

“NDIC has assumed charge of the Heritage Bank.

“The bank has 116 branches and regional offices and we have deployed close to 400 staff of NDIC to take charge of the assets.

“If you have N100, we will pay you, if you have N5 million, we will pay you, if you have N10 million, we will pay N5 million for now because that is the insured sum.

“Depositors do not need to panic, you will get your monies back.

“We will start payment of the insured sums by this week but it will be difficult for me to give the time frame for the payment of the uninsured deposits,’’ he said.

On challenges of banks’ liquidation, he said the Corporation had experienced difficulties in loans recoveries.

Hassan, however, assured that the Corporation would immediately commence the process to avoid delays.

On litigations, he said the Corporation was ready for any litigation that would emanate from the handover of the bank.

Hassan said the Corporation would rely on support from the judiciary for expedited hearings on any debt recovery case brought by the Corporation.

“When cases are delayed in debt recovery, it is depositors that suffer.

“We believe that the judiciary will give the cases accelerated hearing,’’ he said.

The managing director assured bank customers that the system was safe and sound, saying that they should continue their banking businesses without fear. (NAN)