RBI caps banks' dividend at 75 pc of PAT from FY27
The Reserve Bank of India has capped the maximum dividend by banks to shareholders at 75 per cent of profit after tax (PAT), with effect from the financial year 2026-27.
The Reserve Bank of India has capped the maximum dividend by banks to shareholders at 75 per cent of profit after tax (PAT), with effect from the financial year 2026-27.
The central bank on Tuesday issued the Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividend and Remittances of Profits) Directions, 2026, following consultations with stakeholders.
According to the norms, the regulatory capital of the bank should not fall below the applicable regulatory capital requirement even after the payment of dividends.
