The Centre stands to lose a chunk of its non-tax revenues through dividends from public sector banks following recent guidelines issued by the Reserve Bank of India (RBI) tightening dividend payout. | |
| The finance ministry, as is usual, has directed government nominees on bank boards to seek at least 20 per cent dividend for 2003-04. |
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| In 2003-04, banks and institutions were projected to contribute Rs 940 crore towards the Centre's non-tax revenue. In 2002-03, public sector banks paid the Centre around Rs 800 crore as dividends. |
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| The RBI last month stipulated that only banks with net non performing assets below 3 per cent and a capital to risk-weighted asset ratio of at least 11 per cent could pay dividends. |
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| Among the nationalised banks, Dena Bank, Indian Bank, Punjab & Sind Bank, Uco Bank and Central Bank of India may find it difficult to comply with the new criteria. |
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| The government had projected receipts of Rs 11,240 crore as dividends from the RBI and nationalised banks and institutions in the revised estimates for 2003-04 against Rs 10,725 crore in the Budget estimates. |
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| Of this, Rs 10,300 has come as dividend from the RBI. Finance ministry officials expressed displeasure over the central bank's move but said the government did not propose to seek a review of the RBI guidelines. |
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