Government to hold onto profitable POSB – Chinamasa

Government to hold onto profitable POSB – Chinamasa

HARARE, September 16 (The Source) – Zimbabwe’s Finance Minister Patrick Chinamasa says government will not privatise its wholly-owned People’s Own Savings Bank (POSB) after the bank posted a $5 million after tax profit in the half year to June compared to $1,23 million last year.

“No no we will not privatize it. My expectation is that we grow it into a big bank so they are able to display financial muscle,” Chinamasa told a press briefing while announcing the bank’s new board on Wednesday.

“What we do not have in the economy right now are locally owned big banks. We should work towards promoting locally owned banks. I wish the (bank) could be capitalized to the extent of $200 million, right now it is at $20 million.”

Last year, the chief executive Admore Kandlela said government had proposed to sell 49 percent of its shareholding in order to raise capital to fully capitalise the bank. POSB has the largest customer base of all Zimbabwe’s banks, with over 460,000 account holders.

The new board will be chaired by Matilda Dzimbunu who will be deputized by Israel Ndlovu.

Other board members include Patience Shuro, Ignatius Mvere, Cecilia Nyamutswa, Monica Mureriwa and Onias Jambwa.

Kandlela, who also sits on the new board, said the bank expects a full-year after tax profit in the region of $7 million.