Finally, how to pay dividends should be decided by the board of directors and the shareholders’ meeting. The board of directors decides whether and how much to pay, and all shareholders rather part of shareholders should be paid. In summary, who should be paid dividends depends on a clear property right structure. There is no need to complicate this matter. 5.
Asset quality As the conference is being held in the context of growing non-performing assets (NPAs) of Indian banks, let me begin with few statistics relating to NPAs to put things in perspective. Before 2008, asset quality of SCBs was improving on a secular basis, following implementation of Prudential Guidelines since mid 1990s.