Banks dividend declaration: Dividend payouts by banks may take a hit

0

During 2019-20, banks did not give any dividend complying with the regulatory order.

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,

  • GIFT ARTICLE
  • FONT SIZE
  • SAVE
  • COMMENT

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Already a Member?

Special Offer on ET Prime

Subscribe to ET Prime – Get Flat 20% Off

View Plans

Special Offer on ET Prime

Subscribe to ET Prime – Get Flat 20% Off

View Plans

Special Offer on ET Prime

Subscribe to ET Prime – Get Flat 20% Off

View Plans

Why ?

  • Sharp Insight-rich, Indepth stories across 20+ sectors

  • Access the exclusive Economic Times stories, Editorial and Expert opinion

  • Clean experience with
    Minimal Ads

  • Comment & Engage with ET Prime community

  • Exclusive invites to Virtual Events with Industry Leaders

  • A trusted team of Journalists & Analysts who can best filter signal from noise

Source link

Leave a comment
Hello,