Dividend and Bank Performance in India: Evidence using Panel Data Analysis
Venkata Mrudula Bhimavarapu1, Shailesh Rastogi2

1Venkata Mrudula Bhimavarapu*, Ph.D. Scholar, Symbiosis Institute of Business Management, Pune; Symbiosis International (Deemed University), Pune, India.
2Dr. Shailesh Rastogi, Professor, Symbiosis Institute of Business Management, Pune; Symbiosis International (Deemed University), Pune, India.
Manuscript received on August 24, 2021. | Revised Manuscript received on August 29, 2021. | Manuscript published on September 30, 2021. | PP: 1-4 | Volume-6 Issue-1, September 2021. | Retrieval Number: 100.1/ijmh.L13600851221 | DOI: 10.35940/ijmh.L1360.0851221
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: Dividend has been a matter of concern since the concept of limited liability of the firms came to existence. The uncertainty regarding dividend policy is supposed to hunker down unless we move away from whack-a-mole approach to a long-winded solution to the problem of dividend policy. The issue gets exacerbated because of inclination towards the valuation by the people who call the shots in the firms. This paper explores the association of dividend with the rising NPAs in the Indian banks. The findings of the paper are the testimony to the fact that dividend policy in the banks has issues and need to be checked and corrected. It is recommended in the paper to decouple dividends from the NPA by linking dividend policy with free cash flow. It is also recommended to adopt DVR shares to cater to the aspirations of those investors who do look for consistent dividend policy irrespective of the performance of the banks in a particular year.
Keywords: Banks, Dividend Policy, Panel Data, Performance.