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

Banks could pay maximum 50% of dividend from their profits in 2020-21; no such restriction on cooperative banks

The Reserve Bank of India (RBI) on Thursday said that in order to stay resilient during the Covid-19 crisis banks could pay maximum 50 per cent of dividend 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 banks 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 banks.
 
"While declaring dividend on equity shares, it shall