The beleaguered Societe Generale Bank of Nigeria (SGBN) is set to resume banking operations as Heritage Bank, following a regional banking license granted to Heritage Banking Company Limited by the Central Bank of Nigeria (CBN).

The bank is set to commence validation of the account holders of SGBN, which they expect to complete a month after its Tuesday, 29 January 2013 commencement date.

The CBN had recently approved the license of the bank to operate as a regional bank called Heritage Bank which would be a full-fledged commercial bank.

The letter conveying CBN's approval for grant of Banking Licence to HBC entitled 'Re: Application for a Commercial Banking Licence with Regional Authorisation' was dated December 27, 2012 with reference number FPR/LAD/CON/HBC/02/062, and signed by the CBN director of financial policy and regulations, Chris O. Chukwu.

It is said that major insurer, International Energy Insurance (IEI) plc, with Ifie Sekibo as the Executive Vice-Chairman is a major shareholder with a 10 per cent stake in the bank, the same as the Saraki family.

The Nigeria Deposit Insurance Corporation (NDIC) recently said SGBN would soon embark on a verification exercise to ascertain its deposit base, while the bank announced that it would commence an immediate validation exercise for account holders of the former SGBN.

A media statement signed by the Group Head, Corporate Affairs, Heritage Bank, Josephine Aligweke, announced that the bank had secured CBN approval and was set to commence operations immediately in accordance with the terms of the license.

It also announced that as a first step, the bank would commence a four-week exercise aimed at validating accounts held by customers of the old SGBN, starting from next Tuesday, January 29.

"All customers of the former Societe Generale Bank (Nig.) Ltd. are advised to look out for announcements in the national dailies detailing the processes and procedures for the account validation exercise", the statement noted

On the contrary, the fate of Savannah Bank which won back its license in the same court judgement as SGBN back in 2009, is still uncertain. It is said that the management is yet to get credible investors, and the CBN is yet to agree to requests of forbearance by the owners.

The CBN had extended the June 30, 2012, deadline for the bank to recapitalise.

The CBN revoked the operating licence of Savannah Bank in February 2002, while that of Societe Generale Bank Plc was revoked on January 16, 2006.

The NDIC and CBN handed over Savannah Bank to the owners on June 9, 2009, with a promise of ensuring a speedy conclusion of the necessary processes for re-opening the bank to the public.

Related

Societe Generale Bank Back as Heritage Bank, Begins Operation Jan 29, Gets CBN Licence

Hope Rises for SGBN Depositors as Heritage Bank Begins Operations

Heritage Bank Commences Validation of SGBN Account Holders

SGBN Resumes Operations as Heritage Bank