New Delhi: Country’s largest private sector lender, HDFC Bank on Tuesday said that the board of directors on June 18 will consider a proposal for recommendation of dividend on the equity shares of the bank for the financial year ended on March 31, 2021. The bank said that it is in view of the RBI’s April 2021 notification pertaining to declaration of dividend by banks.
”The Board of Directors of HDFC Bank Limited (“the Bank”), at its meeting scheduled to be held on June 18, 2021, shall inter alia consider a proposal for recommendation of dividend on the equity shares of the Bank for the financial year ended March 31, 2021, in view of the notification of the Reserve Bank of India pertaining to declaration of dividend by banks released on April 22, 2021,” the bank said in an exchange filing.
The Reserve Bank of India (RBI), in a notification on April 22, had asked banks to restrict dividend payouts for FY21 to 50% to conserve capital and stay resilient amid the covid-19 crisis.
“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 had said in a statement. Cooperative banks, however, were permitted to pay dividend on equity shares from the profits of the financial year.
RBI did not permit banks to pay any dividends in 2019-20 as well. In April last year, it had barred banks from announcing any such rewards amid an outbreak of the pandemic.
The Bank shall appropriately inform the Exchanges after the conclusion of the Board meeting, HDFC Bank added.
Further, the trading window for dealing in securities of the Bank will remain closed from June 15, 2021 to June 20, 2021 (both days inclusive) for the designated employees, directors etc. pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the Bank’s Share Dealing Code, the bank said.