RBI caps bank dividend payouts at 75% from FY27
The Reserve Bank of India has capped bank dividend payouts at 75% of profit after tax starting FY27. This regulation aims to ensure banks maintain adequate capital levels while allowing for substantial profit distribution.
pre-market1 source ↓written by the desknot a recommendation
- on dividend payouts
- 75% cap
The Reserve Bank of India has set a 75% cap on dividend payouts by banks from FY27. This new regulation mandates banks to maintain their regulatory capital above required levels post-dividend payments. Additionally, foreign banks must show positive profits before remitting to their head offices. This move aims to strengthen the banking sector's capital base.
Not investment advice. For informational purposes only.