Dhanalakshmi pares payout

The board of Thrissur-based Dhanalakshmi Bank today approved a reduction in 2005-06 dividend by 2 percentage points to 5 per cent.

The dividend proposal will now be moved for shareholder approval at the bank's annual general meeting on September 28.

The reduction in the rate of dividend is an outcome of a Reserve Bank of India (RBI) directive aimed at transferring a higher proportion of profits to boost the bank's networth, which was Rs 134 crore as on March 31, 2006.