Postbank asks Parliament to push for R1.7bn funding

POSTBANK CEO Nikki Mbengashe on Wednesday revealed the urgent need for R1.7 billion to maintain capital adequacy, following a challenging 18 months in which the bank has already expended more than R500 million of its own revenue to sustain operations.

- BANELE GININDZA

Mbengashe underscored the bank's necessity for R600m for direct operations, with the remainder serving as a guarantee in alignment with the South African Reserve Bank's (Sarb) regulatory requirements.

"With the money we have made, we have spent more than R500m in the last 18 months to two years. We've been able to establish a new call centre, we've got visibility, we are partnering with retailers, we have built in new systems," she said.

"We need a little bit more to build on that. The R1.7bn fulfills the sub-regulatory requirements to ensure that we keep that amount to qualify for capital adequacy."

Discussing the broader role of Postbank, Mbengashe highlighted the continued exclusion within South Africa's banking system, with more than 7 million individuals still unbanked.