In a significant development, the Rajasthan Registrar of Cooperative Societies (RCS) has granted approval to Udaipur Urban Cooperative Bank for the disbursement of a 100% dividend to its shareholders for the financial year 2023-24.
This marks a substantial increase from the previously approved 50% dividend distribution.
With 7,015 shareholders, the bank is set to distribute a total dividend amount of Rs 3.42 crore.
Notably, 90% of shareholders hold shares valued at less than Rs 6,000, ensuring that a large segment of small investors benefits from this decision.
The disbursement process is expected to be completed within the next few days, as all necessary approvals have been obtained.
For the past 30 years, the bank has consistently paid a 50% dividend. However, given its strong financial position, the Board proposed a 100% dividend this year, which was approved in the Annual General Meeting (AGM). As per norms, the proposal was then sent to the RCS for final approval.
Initially, based on past trends, the RCS approved only a 50% dividend. However, after reviewing the bank management’s request and the RBI circular, which allows scheduled banks to distribute up to 40% of net profit as dividends, and considering the bank’s sound financial standing, the RCS reconsidered and approved the 100% dividend payout.
