The People’s Own Savings Bank (POSB) has given government a dividend of $313 000 based on a profit of $1, 25 million last year.
BY TATIRA ZWINOIRA
Speaking at the handover of the cheque to Finance minister Patrick Chinamasa last week, POSB board chairman Israel Ndlovu said that the Dividend Act requires that 25% of profit be declared as a dividend.
“In terms of our dividend policy and also in line with the POSB Act as a board, we sat and said it’s a year to declare a dividend. The remainder, of course, is to grow the bank and to build up capitalisation,” Ndlovu said.
POSB has 34 of their own branches that operate as POSB in 216 of Zim Post’s infrastructure countrywide.
Chinamasa hailed POSB for having worked hard to be profitable.
“When I heard that you [POSB] had secured a meeting the usual suspicion is that most people who come through my door are coming with complaints and not good news,” he said.
Chinamasa said POSB was one of the few banks that practise inclusive banking to the extent that people in the rural areas are able to open up accounts.
He implored POSB to adhere to good corporate governance practices.
“We approved in cabinet corporate governance framework that is to apply to all state enterprises of which you [POSB] are one. That is going to include the holding of annual general meetings. I hope that it will be the last time we have a meeting confidentially,” Chinamasa said.
“In future, I would want to see it in an open meeting where everybody is there like a public company where you give your figures, report to the meeting your operations, what you have done, the losses, the profits, and why the losses, if there are any losses.”
POSB was established in 1904 to mobilise savings for national development and commenced its operations through Post Office infrastructure network.
People’s Own Savings Bank of Zimbabwe Act (Chapter 24:22) of 2001 established the bank as a corporate body to carry out the business of a Savings bank.