A call has been made investigate into the conduct of US research group Viceroy following its Capitec report.
The research group released a report claiming the bank is a loan shark “masquerading as a community finance provider”.
The PSG Group, which is the bank’s top shareholder, says that is stands behind the bank's management and team and wants Viceroy to be investigated.
The research group has claimed that Capitec is a wolf in a sheep's clothing and a loan shark.
However, South African Reserve Bank stepped in refuting the claims says that Capitec is sound and stable.
Capitec CEO Gerrie Fourie says Viceroy has commented on the allegations saying: “We’re struggling to understand and to reconcile the numbers that they have done on the repayments of loans in a particular year, we’ve published figures of about R18 billion, they are at R16 billion.”
The PSG Group says Viceroy's report has made irresponsible statements creating unwarranted market turmoil.
David Shapiro of Sasfin, a bank-controlling company, says that Viceroy's motives are not yet clear.
“From my point of view, there’s rather dark side to the publication of their report, they do it with some specific agenda in mind,” says Shapiro.
Capitec's share price went down by 10% to 20% yesterday afternoon upon the release of the report, but bounced back.