 "RBI")
The Reserve Bank of India has allowed banks to use statutory reserves to pay coupon (interest) on additional tier-I bonds, subject to certain riders.
“Coupons must be paid out of 'distributable items'. In this context, coupon may be paid out of current year profits,” RBI said. The amendments are applicable with immediate effect, it said.
The apex bank said if current year profits are not sufficient, coupon may be paid subject to availability of profits brought forward from previous years and reserves.
The accumulated losses and deferred revenue expenditure, if any, shall be netted off from the
“Coupons must be paid out of 'distributable items'. In this context, coupon may be paid out of current year profits,” RBI said. The amendments are applicable with immediate effect, it said.
The apex bank said if current year profits are not sufficient, coupon may be paid subject to availability of profits brought forward from previous years and reserves.
The accumulated losses and deferred revenue expenditure, if any, shall be netted off from the
