Reserve Bank to pay out Habib Overseas Bank depositors up to R100,000
Local unit of the Pakistan-based bank, once a buyout target for the Guptas, was found to be in a far worse financial state than initially thought
The SA Reserve Bank will pay qualifying depositors of Habib Overseas Bank (HOB), which is in curatorship, up to R100,000 each after the local unit of the Pakistan-based lender was found to be in far worse financial shape than initially feared.
The Bank will make the payments from June 12 — based on a guarantee issued by the National Treasury — to assist depositors who have money tied up with the troubled lender whose branches remain closed since the curatorship order. FirstRand-owned FNB was selected to facilitate the repayment to depositors based on the recommendation of the curator as well as other criteria, including proximity to depositors, cost structure and the ability to execute the process speedily...
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