Banks not to distribute any dividend from FY20 profits: RBI

Analysts believe this is a positive step fo banks, and will provide them more capital for lending. “The critical thing to notice is that RBI has indicated that dividends would not be distributed by commercial banks, which would act as a substitute for recapitalisation and provide additional security to depositors. The communication from RBI that it would take necessary steps to easy liquidity as and when required is reassuring,” said Divakar Vijayasarathy, Founder & Managing Partner, DVS Advisors LLP.