Synopsis
“There is no regulatory direction curtailing the dividend payment by banks from FY2021 profits. But given the increased uncertainty on asset quality amid the second wave of covid-19, we expect banks to curtail dividend declaration to conserve capital,” said Anil Gupta, vice president at ICRA Ratings.
MUMBAI: Investors in banks have not only bad loans to worry about. The quantum of dividend pay-outs is also under question. While private banks have traditionally been hefty dividend givers compared to public sector peers, the need to conserve cash might force the lenders to be stingy – even without central bank directives.
HDFC Bank, the country’s most valuable lender, has already announced its stand that it will skip dividends. ICICI Bank,
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