Banks must halve their dividends to conserve capital in view of Covid: RBI

The (RBI) on Thursday said that in order to stay resilient during the Covid-19 crisis could pay maximum 50 per cent of from their profits in 2020-21.

“In view of the continuing uncertainty caused by the ongoing second wave of Covid-19 in the country, it is crucial that remain resilient and proactively raise and conserve capital as a bulwark against unexpected losses,” the central bank said in a statement on its website.

However, there will be no such restriction on cooperative

“While declaring on equity shares, it shall be the responsibility of the board of directors to inter alia consider the current and projected capital position of the bank vis-a-vis the applicable capital requirements and the adequacy of provisions, taking into account the economic environment and the outlook for profitability,” the central bank said.

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