Bank of Maharashtra’s board has recommended a dividend worth ₹337 crore for the financial year ended March 31 2022. The money, following government nudge, is being paid out of net worth, reports Business Standard.
The revised net-worth would be ₹10,175 crore, down from ₹10,512 crore.
The dividend payout will make a small dent in capital adequacy ratio (CAR) to 16.48 per cent from 16.85 per cent, according to filing with BSE.
BoM stock closed 3.73 per cent lower at ₹15.5 Per share on BSE. It touched 52-low of ₹15 per share in intra-day trading.
The revision in audited results will not change net profit for Fy22. The bank's net profit doubled to ₹1,151.54 crore, as against ₹550.25 crore in 2020-21. The board had not recommended dividend when in met in April 2022 to approve results for Fy22.
Another public sector lender Bank of Baroda will revise the recommended dividend and its board is meeting on May 31, 2022 to decide quantum. Earlier, its board had recommended a dividend at ₹1.20 per equity share (face Value ₹two each) for the Fy22.
Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer, CRISIL Ratings said the profitability of PSBs has substantially improved in FY22 vis-à-vis FY21 levels leading most of them to announce dividends. This is what is normally followed by the corporate world in a business as usual situation.
Also the fact that all PSBs have a cushion over regulatory Tier 1 capital adequacy requirement of at least 100bps, it makes them well placed to pay out dividends from their profits, he added.
The board of Life Insurance Corporation (LIC) will meet on May 30 to approve the results for the quarter ended and year ended March, 2021, and payment of dividend.