Clients of Ithala Bank in Durban have voiced their concerns and frustrations over the bank’s current financial predicament following recent legal action.
Last week, the Reserve Bank’s Prudential Authority filed a case in the Pietermaritzburg High Court seeking the provisional liquidation of Ithala Bank. As a result, several branches in Durban’s central business district have shut their doors, leaving customers uncertain about their funds.
In response to the situation, Finance Minister Enoch Godongwana announced that a government guarantee of R2 billion has been allocated to protect depositors' savings, regardless of the bank’s future.
Clients Share Their Concerns
SABC News spoke to a 70-year-old female customer from Umlazi, who was among many frustrated clients waiting in line to withdraw their funds. Having banked with Ithala since 1987, she expressed her disappointment over the uncertainty surrounding her savings.
“Every year, I save my money through Target Save. I was supposed to withdraw this money on January 5, but I have been unable to do so. Each time I visit the bank, I leave without clarity. I have saved for years through stokvels and Target Save, and I had a monthly debit order. Now, I am here to withdraw my money and reconsider whether to continue banking here,” she said.
Similarly, a 21-year-old man shared that his grandmother had been saving money for his future with the bank since he was a child. Given the bank’s instability, he now intends to withdraw his savings and transfer them to another financial institution.
“I am here to withdraw my money because I heard that the bank is closing down. My grandmother advised me to move my savings elsewhere. She has been saving for me through Target Save for years, but given the bank’s current issues, I no longer feel secure keeping my funds here,” he explained.
As the future of Ithala Bank remains uncertain, customers are left grappling with difficult financial decisions. Authorities continue to monitor the situation, assuring depositors that their funds remain protected amid ongoing legal proceedings.