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TMI BlogDeclaration of dividends by banksX X X X Extracts X X X X X X X X Extracts X X X X ..... ion with the Standing Technical Advisory Committee on Financial Regulation (STACFR) and it has been decided that the regulatory focus with regard to payment of dividend by banks should shift from 'quantum of dividend' to 'dividend payout ratio'. Accordingly our revised guidelines on dividends payable by banks would be as under :- 2. Eligibility criteria for declaration of dividend (a) Only those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f dividends. (b) Quantum of dividend payable Banks, which qualify to declare dividends consequent upon compliance with the requirements set at 2(a) above would be eligible to pay dividends without obtaining the prior approval of the Reserve Bank, subject to further compliance with the following: i. The dividend payout ratio does not exceed 33. 33 %. ii. The proposed dividend should be payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) Banks, which comply with the requirements at 2(a) above but desire to declare dividends higher than that specified in para 2(b) should obtain prior approval of RBI for declaration of such higher dividend. The RBI would consider the requests received from banks on a case-to-case basis. 3. Interim dividend Banks may also declare and pay interim dividends out of the relevant accounting period' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividends should report details of dividend declared during the accounting year as per the proforma furnished in the Annexure. The report should be furnished within a fortnight after payment of dividend(s). 6. The revised guidelines prescribed in paragraphs 2 to 5 above will be applicable to the dividends declared for the accounting year ended March 31, 2004 onwards. A copy of the guidelines may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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