99% Of Heritage Bank Depositors Have Total Balances Of Less Than N5m – NDIC

The Nigerian Deposit Insurance Corporation (NDIC) has disclosed that 99 per cent of Heritage Bank depositors have total balances of less than N5m.

The Managing Director of the NDIC, Bello Hassan, made the disclosure on Wednesday in Abuja at a media briefing on the liquidation of Heritage Bank following the withdrawal of its licence by the Central Bank of Nigeria (CBN) for breaching Section 12 (1) of BOFIA, 2020.

The NDIC put the total depositors at Heritage Bank at 2.3 million.

According to Hassan, all depositors at the bank 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 MD, assured the public that payment of the bank’s depositors will commence before the end of the week, dousing the tension that has gripped customers upon the licence revocation.

Hassan noted that the total bank deposits at heritage bank stands at N650 billion while its loan portfolio stands at over N700 billion.

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

According to the CBN, the decision to revoke Heritage Bank’s licence is to strengthen public confidence in the banking system, and ensure that the soundness of the financial system is not impaired.

The ongoing liqiudation process by the NDIC follows its appointment by the apex bank as the liquidator of the bank under Section 12 (2) of BOFIA, 2020.