RBI caps bank dividend payouts at 75% from FY27
after close1 source ↓written by the desknot a recommendation
The Reserve Bank of India has set new dividend payout norms, allowing banks to distribute up to 75% of profits after tax starting FY27. This directive aims to ensure that banks maintain adequate regulatory capital post-dividend payments. Foreign banks must also report positive profits before remitting funds abroad.
This move may impact banks' capital management strategies and dividend policies, potentially influencing investor sentiment in the banking sector.
Not investment advice. For informational purposes only.