Section 47: Declaration and Distribution of Dividends

1) A bank or financial institution shall have to obtain approval from the Rastra Bank before declaring and distributing dividends.

2) No bank or financial institution shall be allowed to declare or distribute dividends to its shareholders until it recovers all of its preliminary expenses and the losses sustained by it until the previous year, capital, capital fund and possible loan loss provisioning as prescribed by the Rastra bank and for general reserve fund pursuant to Section 44 and until the complete sale of shares to be allotted to the general public.