Section 40
Disposal of profits. Repealed
The State Bank of India (Subsidiary Banks) Act, 1959
About this Act
An Act to provide for the formation of certain Government or Government associated banks as subsidiaries of the State Bank of India and for the constitution, management and control of the subsidiary banks so formed, and for matters connected therewith, or incidental thereto.
(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.
(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.