posb.gifThe People’s Own Savings Bank is on a rebound with an increase in deposits and is currently disbursing US$48 million dollars towards individual and corporate loans payable over two years.
With the macro-economic conditions prevailing in the economy liquidity constraints has remained a challenge with financial institutions being criticized for failure to support the economic growth mode through availing of long term loans.

Despite these difficulties, the POSB has managed to thrive.

In an interview in the capital, POSB Chief Executive Officer, Mr. Admore Kandlela said his financial institution has disbursed over US$48 million dollars in long term loans for small-to medium enterprises and large corporates to enhance recapitalization.

In 2008 financial institutions experienced difficulties which led to the flight of depositors.

However, depositors returned after the introduction of the multi-currency regime.

The number of POSB depositors currently stands at 300 000.

The loan facility has become popular with Zimbabweans as it is payable over two years. Asked on the future of the banking sector Mr. Kandlela said the future is bright adding that there is need to exploit the unbanked sectors through the introduction of various initiatives.

For the US$48 million dollars disbursed, 90% went to salary based loans while 10% went to large firms and small to medium enterprises.

During the 2010 financial year the bank posted US$3.4 million profits after posting a loss of US$1.9 million dollars in 2009.

The People’s Own Savings Bank was created through an act of parliament and is wholly owned by government.