Kotak Bank told to not pay dividend on PNCPs

RBI has restricted private sector lender Kotak Mahindra Bank from paying dividend on perpetual non-cumulative preference shares (PNCPs).

The banking regulator had earlier this week advised banks not to make any dividend payment from the profits pertaining to the financial year ended March 31, 2020 (FY20).

The restriction on dividend distribution also applies to PNCPs, the RBI informed the bank in a communication.