India’s largest private bank HDFC Bank on Friday said its board declared a dividend of Rs 6.50 per share for the year ended March 2021.
“A dividend of Rs 6.50 per equity share of face value of Re 1/- each (i.e. 650% on face value) out of the net profits for the year ended March 31, 2021, has been recommended, subject to the approval of the shareholders of the Bank at its ensuing Annual General Meeting (AGM). The record date has been fixed as June 30, 2021, for the purpose of ascertaining the entitlement of the dividend,” said HDFC Bank in a regulatory filing.
The dividend distribution will come up for shareholders’ approval at the 27th Annual General Meeting (AGM) of the Bank which will be held on July 17, 2021, at 2:30 through video-conferencing.
If approved, the expected date for payment of dividend in electronic form and for dispatch of physical dividend warrants would be August 2, 2021, it added.
The banks board also approved revising the tenure of re-appointment of Independent Director Umesh Chandra Sarangi from March 1, 2021 till February 29, 2024.
“An RBI circular on ‘Corporate Governance in Banks’ dated April 26, 2021 allows the upper age limit for non-executive directors to be 75 years of age. Mr Sarangi shall complete his seventy-five years of age on February 5, 2027, he shall complete the maximum tenure of eight consecutive years as director on the Board of the Bank as prescribed by the Banking Regulation, Act, 1949 on February 29, 2024, and hence, his re-appointment shall be till February 29, 2024, subject to the approval of the shareholders of the Bank at their ensuing AGM.
The board will also seek shareholders’ nod to appoint MM Nissim & Co LLP, chartered accountant firm, as its first preferred firm to act as joint statutory auditors for three years till FY2023-24. MSKA & Associates is its auditor at present.
As per RBI guidelines, banks with asset size of Rs 15,000 crore and more at the end of a previous year, need to appoint minimum two joint statutory auditors.
