P&H High Court: Re-Investigation Cannot Nullify Existing Acquittal Despite Breach of Stay Order  ||  Gujarat HC: Illegal Mining Vehicle Complaints Must Be Filed Before Sessions Court, Not Magistrate  ||  Delhi High Court Lays Down Registry Directions for Dealing with Insufficiently Stamped Arbitral Award  ||  Delhi High Court: Victims Need No Leave to Appeal Acquittal or Conviction for Lesser Offence  ||  SC: Limitation Act Inapplicable to Revisions under Karnataka Land Revenue Act  ||  SC: Banks Can Invoke SARFAESI for Loans Acquired from NBFCs Outside the Act  ||  SC: Gujarat Prohibition Act Does not Bar Interim Seized Vehicle Release  ||  Supreme Court Quashes Rs. 425-Crore Customs Penalty Based on AI-Generated Fake Case Laws  ||  SC: Guilt cannot be Presumed Solely Due to Collusion Allegations against Investigating Officer  ||  SC: Clarificatory Statement Does Not Constitute a Binding Undertaking for Contempt Proceedings    

Declaration of dividends by banks- (Reserve Bank of India) (22 Apr 2021)

MANU/RMIC/0057/2021

Banking

1. Please refer to our circular DOR.BP.BC.No.29/21.02.067/2020-21 dated December 4, 2020, and other associated circulars on the captioned subject.

2. In view of the continuing uncertainty caused by the ongoing second wave of COVID-19 in the country, it is crucial that banks remain resilient and proactively raise and conserve capital as a bulwark against unexpected losses. Therefore, while allowing banks to pay dividend on equity shares, it has been decided to review the dividend declaration norms for the year ended March 31, 2021 as below.

Commercial Banks

3. In partial modification of the instructions contained in circular DBOD.NO.BP.BC.88/21.02.067/2004-05 dated May 4, 2005, banks may pay dividend on equity shares from the profits for the financial year ended March 31, 2021, subject to the quantum of dividend being not more than fifty percent of the amount determined as per the dividend payout ratio prescribed in paragraph 4 of the said circular. Other instructions in the circular dated May 4, 2005 shall remain unchanged.

Cooperative Banks

4. Cooperative banks shall be permitted to pay dividend on equity shares from the profits of the financial year ended March 31, 2021 as per the extant instructions.

General

5. All banks shall continue to meet the applicable minimum regulatory capital requirements after dividend payment. While declaring dividend on equity shares, it shall be the responsibility of the Board of Directors to inter-alia consider the current and projected capital position of the bank vis-a-vis the applicable capital requirements and the adequacy of provisions, taking into account the economic environment and the outlook for profitability.

Tags : DECLARATION   DIVIDENDS   BANKS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved