State Bank of India (Subsidiary Banks) Act : Disposal of profits. Indian Bare Acts :

State Bank of India (Subsidiary Banks) Act,1959

Act No : 38

Section : Disposal of profits.

40. Disposal of profits.- (1) After making provision for bad and doubtful debts, depreciation in assets, equalisation of dividends, contribution to staff and superannuation funds and for all other matters for which provision is necessary by or under this Act or which are usually provided for by banking companies, a subsidiary bank may, out of its net profits, declare a dividend. (2) The rate of dividend shall be determined by the Board of Directors of the subsidiary bank concerned. (3) Nothing in this section shall be deemed to preclude the payment of interim dividends in such manner and to such extent as may be prescribed.