Banks jack up CAR in FY04

With the exception of ICICI Bank, all other banks have raised their capital adequacy ratio at the end of March 2004.

ICICI Bank's capital adequacy fell marginally from 11.10 per cent to 10.36 per cent. HDFC Bank's CAR now stood at 11.66 per cent (11.12 per cent). The bank has declared a dividend of 35 per cent against 30 per cent for the previous year.

Among its peers, UTI Bank's capital adequacy ratio stood at 11.21 per cent against 10.90 per cent in the last fiscal. It has declared 22 per cent dividend. IDBI Bank's CAR is now 10.4 per cent (9.6%) and its declared a 12.5 per cent dividend.

In public sector, Corporation Bank's CAR went up to 20.11 per cent (18.50%).

It has declared 30 per cent dividend. Andhra Bank's CAR stood at 13.71 per cent (13.62%). It has declared a dividend of 14 per cent in addition to the interim dividend of 14 per cent for the year taking total dividend to 28 per cent.

Vijaya Bank's capital adequacy is now 14.11 per cent (12.66 per cent). It has declared 15 per cent dividend in addition to an interim dividend of 10 per cent.

Indian Bank's CAR jumped from 10.85 per cent to 12.82 per cent.

The Reserve Bank of India (RBI), in its recent directive, had said that banks need not take its approval for dividend declaration if they meet the criteria of a minimum CAR of 11 per cent in the preceding two years and in the year in which the dividend is proposed to be declared and their net NPA to net advances ratio should be under three per cent.