Lok Sabha Question No. 2125 (UNSTARRED), answered on 2017-07-28
Subject: Dividend by Banks
Ministry: FINANCE
Asked by: ELUMALAI VELLAIGOUNDER, K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO.2125

TO BE ANSWERED ON THE 28 TH  July 2017/ Shravana 6, 1939 (SAKA)

## Dividend by Banks

## 2125.   SHRI V. ELUMALAI: SHRIMATI  K.  MARAGATHAM:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is true that hit by and  mounting bad loans, demonetization and lower credit off take, some Public Sector Banks (PSBs) may skip paying dividend and if so, the details thereof;
- (b) whether  the  non-paying  of  dividends  by  some  PSBs  will have implications for Government receipts in the current fiscal, if so, the details thereof;
- (c) whether the previous fiscal as many as 16 public sector banks skipped paying dividend leading to a threefold decline in Government receipts to Rs. 1444.6 crore and if so, the details thereof and the reasons therefor;
- (d) whether  only  six  State  owned  banks  declared  dividend  though  at  a  lower  rate  for  the financial year ended March, 2016 and if so, the details thereof; and
- (e) whether some PSBs bankers have already  indicated to the Government that it may  be possible for them to pay dividend as their profits are likely to remain subdued due to lower credit off take, effect of demonetization and rising Non-Performing Assets (NPAs), if so, the details thereof?

## ANSWER

## The Minister of State in the Ministry of Finance (SHRI SANTOSH KUMAR GANGWAR)

(a)  to  (e):  Public  Sector  Banks  (PSBs)  have  been  permitted  to  declare  dividend  subject  to compliance of RBI guidelines dated 04.05.2005 and 27.03.2014. As per the above guidelines, banks would be able to pay dividend out of current year's profit only.

The details of dividend declared on equity shares reported by all PSBs to RBI for the financial year 2015-16 is at Annexure. The main reason for low dividend from banks during the period is loss incurred by some of the banks and lower net profits for the remaining PSBs during the financial year.

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Annexure.

## Lok Sabha USQ No.2125 for 28.07.2017 reg. 'Dividend by Banks'.

Total Dividend declared by Public Sector Banks for the year 2015-16. (Rs. in Crore)

| S.No.   | Name of the Bank                 | 2015-16   |
|---------|----------------------------------|-----------|
| 1       | Allahabad Bank                   | NDD       |
| 2       | Andhra Bank                      | 34.06     |
| 3       | Bank of Baroda                   | NDD       |
| 4       | Bank of India                    | NDD       |
| 5       | Bank of Maharashtra              | NDD       |
| 6       | Canara Bank                      | NDD       |
| 7       | Central Bank of India            | NDD       |
| 8       | Corporation Bank                 | NDD       |
| 9       | Dena Bank                        | NDD       |
| 10      | IDBI Bank Limited                | NDD       |
| 11      | Indian Bank                      | 72.04     |
| 12      | Indian Overseas Bank             | NDD       |
| 13      | Oriental Bank of Commerce        | 22.50     |
| 14      | Punjab and Sind Bank             | 66.06     |
| 15      | Punjab National Bank             | NDD       |
| 16      | Syndicate Bank                   | NDD       |
| 17      | UCO Bank                         | NDD       |
| 18      | Union Bank of India              | 134.05    |
| 19      | United Bank of India             | NDD       |
| 20      | Vijaya Bank                      | NDD       |
| 21      | State Bank of Bikaner and Jaipur | 100.10    |
| 22      | State Bank of Hyderabad          | NDD       |
| 23      | State Bank of India              | 2018.32   |
| 24      | State Bank of Mysore             | 28.80     |
| 25      | State Bank of Patiala            | NDD       |
| 26      | State Bank of Travancore         | 35.55     |
|         | Total                            | 2511.48   |

NDDNo Dividend Declared.