Banks paid on an average 18.89 per cent of their net profit as dividend in 2003-04, much lower than the 33.33 per cent cap on dividends that was in force till now and even lower than the 40 per cent cap the Reserve Bank of India has now prescribed. ICICI Bank paid the highest, 33.23 per cent of its net profit.
In all, 35 listed dividend-paying banks paid Rs 3,296 crore (Rs 32.96 billion) by way of dividends. This works out to 18.89 per cent of their net profit of Rs 17,448 crore (Rs 174.48 billion) in 2003-2004.
The State Bank of India's dividend payout was 15.73 per cent of its net profit while HDFC Bank's outgo on this account was 19.64 per cent of its net profit.
Dividend payout data available with the Business Standard Research Bureau show that almost all listed banks are now eligible to pay an enhanced dividend of 40 per cent of net profits as most banks already comply with the new norms.
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