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The Reserve Bank of India has introduced a revised pidend framework on March 10, 2026, replacing the earlier 2025 directions and redefining how banks determine shareholder payouts. The new guidelines link pidend eligibility to a bank's capital strength, particularly its CET-1 ratio, while also introducing Adjusted Profit After Tax (Adjusted PAT)—ensuring that pidends are paid only out of sustainable earnings after accounting for asset quality, including NPAs. Additionally, non-recurring and uncertain income streams have been excluded from pidend calculations, reinforcing a stricter, stability-focused approach. For investors, this framework is likely to create clear pergence within the banking sector—with well-capitalised banks gaining flexibility to distribute pidends, while weaker institutions may face restrictions. This video provides a focused breakdown of the framework and its implications for banking stocks and investment decisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
