DIVIDEND POLICY

CORPORATE FINANCE
 Dividend Policy

Dividend policy means …….

 Dividend
• Policy of No Immediate Dividend/ Zero
Dividend Policy
• Regular or Stable Dividend Policy
• Regular Dividend plus Extra Dividend Policy
• Irregular Dividend Policy
• Regular Stock Dividend Policy
• Regular Dividend plus Stock Dividend Policy
• Conservative Dividend Policy
• Liberal Dividend Policy
BANKING
INDUSTRY
 Banking Sector

• 5 Leading Players in Banking Sector

 Banking
 SBI
HDFC Bank
ICICI Bank
 IDBI
 AXIS Bank
BANKING INDUSTRY
 Divi • State Bank of India  is
Share the largest banking and
Year den EPS
Price financial
d
services company with
2006 14.00 83.73 Rs. 970 its headquartered
2007 14.00 86.29 Rs. 900
in Mumbai, India

2008 21.50 106.56 Rs. 1600

2009 29.00 143.67 Rs. 1050

2010 30.00 144.37 Rs. 2120

 Shar • HDFC Bank Ltd is a
Divid major Indian financial
Year EPS e
end services company based
Price
in India, incorporated in
2006 5.50 27.81 Rs. 810
August 1994
2007 7 35.74 Rs. 860 • After the Reserve Bank
of India allowed
Rs.
2008 8.50 44.87
1,300
establishing private
sector banks.
2009 10 52.77 Rs. 850

2010 12 64.42 Rs. 1800

 Share • ICICI Bank (Industrial
Year Dividend EPS
Price Credit and Investment
2006 8.50 28.55 Rs. 600
Corporation of India) is a
major banking and
2007 10.00 34.59 Rs. 800 financial services
organization in India.
2008 11.00 37.37 Rs. 789 •
It is the second largest
bank in India and the
2009 11.00 33.76 Rs. 370
largest private sector bank
2010 12.00 36.10 Rs. 885 in India by market
capitalization.
 Divid Share • The Industrial
Year EPS Development Bank of
end Price
India Limited (IDBI) is
2006 1.50 7.75 Rs. 80
one of India's leading
public sector banks and
2007 1.50 8.70 Rs. 75
4th largest Bank in
2008 2.00 10.06 Rs. 84 overall ratings.

2009 2.50 11.85 Rs. 20

2010 3.00 14.23 Rs. 117

 Divide Share • Axis Bank Limited,
Year EPS formerly UTI Bank, is
nd Price
a financial services firm
2006 3.50 17.41 Rs. 300
that had begun
2007 4.50 23.40 Rs. 460
operations in 1994,
after the Government
2008 6.00 29.94 Rs. 770 of India allowed new
private banks to be
2009 10.00 50.57 Rs. 400 established.

2010 12.00 62.06 Rs. 1170

 Conclusion
• In banking sector banks follows conservative dividend
policy as almost all banks gave dividend less then 50%
of EPS
• We have also found that dividend of all banks is
increasing consistently that shows continuous growth in
the profits of the banks.
• The share price of banks increases, as its dividend
increases so we can say that the dividend affects the
price of share.
• As banks follows conservative dividend policy and its
share prices increases.
 Bibliography
• Chandra, Prasanna “Financial Management”
• Khan & Jain “Financial Management”
• http://finance.mapsofworld.com
• http://www.investopedia.com
• http://www.smcindiaonline.com
• http://www.CartoonStock.com
GROUP MEMBERS
• MANISH KUKREJA (12)
• ABHISHEK JAGWANI (10)
• NIKHIL JADHAV (09)
• NEHA PUNJABI (22)
• KHUSBHU DAYATAR (31)
• POOJA SINGH (36)
Thank you!!!