Banks not to pay further dividend from FY20 profits

Banks will not be required to pay any further dividends from their profits from the financial year 2019-20 as the Reserve Bank of India wants these financial institutions to conserve capital so as to deal with heightened uncertainty amid the coronavirus scare.

Announcing a raft of liquidity and regulatory easing of steps on Friday, RBI Governor Shaktikanta Das said that it is imperative that banks conserve capital to retain their capacity to support the economy and absorb losses in an environment of heightened uncertainty.

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