Lesotho PostBank is a retail banking institution that serves the unbanked and underbanked economically active urban and rural population who do not have access to financial services in a sustainable manner.

Initially, the Government of Lesotho (GoL) had a bank i.e. the Lesotho Bank. However, when that bank was privatized, several rurally located branches were closed because they were not profitable enough for private sector interests. The government found it necessary to set up a bank that would cater for the unbanked and underbanked populace without primary regard for profitability concerns.

The Bank was set up as a company to have separate legal personality and a degree of independence from government interference, although it would be a wholly state-owned enterprise. The Bank would benefit from a board of directors, who would oversee the Bank more directly with skilled and experienced supervision. The Bank would also be required to be audited by rotating external auditors as opposed to exclusive auditing by the Auditor-General.