Shareholders of the erstwhile Housing Development Finance Corp. expressed dissatisfaction over reduced dividends at the August 12 annual meeting following its merger with HDFC Bank Ltd.
For the year ended March 2024, HDFC Bank has declared an equity dividend of Rs 19.5 per share. Compared to Rs 45 per share of dividend received from HDFC Limited in the previous year, the former investors of the housing financier, now part of the bank raised the issue of lower dividend payouts with HDFC Bank's management at the recently concluded AGM.
Responding to this, HDFC Bank’s part-time chairman and independent director, Atanu Chakraborty said bank needs to build its capital and provide certain returns to shareholders.
“The bank remains committed to total shareholders returns to ensure that also calls for growth and also calls for bolstering the capital base of the bank. The profit has been judicially divided between both dividend as well as capital,” Chakraborty said.
The chairman of India's largest private sector bank said the balance sheet in the financial year 2023-24 stood at over Rs 36 lakh crore, with net interest income growing by 25 percent to Rs 1.09 lakh crore.
The Capital Adequacy Ratio stood at 18.8 percent, as against the minimum regulatory requirement of 11.7 percent.
Profit after tax stood at Rs 60,812 crore on a standalone post-merger basis in FY24, Chakraborty said.
He further added that gross Non-Performing Assets were amongst the lowest in the industry at 1.24 percent and Provision Coverage Ratio stood at 74.04 percent in FY24.
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