NDIC begins payment of Heritage Bank depositors – MD

The Nigeria Deposit Insurance Corporation (NDIC), says it will begin payment of insured sum to 2.3 million depositors of Heritage Bank in-liquidation within the week.The Managing Director of NDIC, Mr Bello Hassan, said this while briefing newsmen in Abuja on Wednesday.The managing director said the move was to engender confidence among depositors to promote financial stability.He said that 99.9 per cent of depositors of the defunct bank had a deposit balance of less than five million naira while only 4,000 of the depositors had more than five million naira deposit.Hassan said the bank had deposits worth N650 billion and loans of about N700 billion.He said the deposits and the loans could be more, adding that the final amount would be known at the end of the liquidation processes.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 man aging 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.Source: News Agency of Nigeria