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Indian Bank withdraws plans to pay dividend after RBI censures proposal

The bank had recommended payment of Rs 6 per share last month for the year ended March 31

Illustration by ajay mahanty
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Illustration by ajay mahanty

Rahul Satija & Ashutosh Joshi | Bloomberg
The only state-run Indian lender that isn’t part of a Rs 14 billion capital infusion by the government withdrew plans to pay a dividend after the central bank censured the proposal.
 
Indian Bank has avoided some of the bad-loan issues plaguing its peers by focusing on consumer lending. Still, the Reserve Bank of India advised that the lender withhold a planned dividend till trading losses on government debt, gratuity and provisions were fully provided for, the Chennai-based bank said in an exchange filing on Thursday.
 
India is struggling to resolve Rs 210 billion in stressed debt, nearly 90 per cent

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First Published: Jun 28 2018 | 10:33 PM IST

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