Indian Bank to withdraw dividend payment resolution after RBI's reply

Indian Bank's Board on May 10 has recommended for payment of dividend at Rs 6 per share of the equity capital for 2017-18

Public sector lender Indian Bank has decided to withdraw a resolution related to dividend payment after regulator Reserve Bank of India (RBI) said the bank can declare a dividend after fully providing for Mark-to-Market (MTM) loss, gratuity and other provisions.

The bank's MTM losses alone are around Rs 5.47 billion.

Indian Bank's Board on May 10 had recommended payment of dividend at Rs 6 per share (60 per cent) of the equity capital for 2017-18.

As per Section 15(1) of the Banking Regulation Act, no banking company shall pay any dividend on its shares until all its capitalised expenses (including