Section 38 in The State Bank Of India Act, 1955

38. Disposal of profits.-

(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

1. The word" and" omitted by Act 38 of 1959, s. 64 and Sch. III (w. e. f. 10- 9- 1959 ). 2. Ins. by ibid. s. 64 and Sch. III (w. e. f. 10- 9- 1959 ). 3. Ins. by Act 26 of 1959, s. 7. 4. Subs. by Act 3 of 1994, s. 18, for certain words (w. e. f. 15- 10- 1993 ).

is necessary by or under this Act or which are usually provided for by banking companies, the State Bank may, out of its net profits, declare a dividend.

(2) Subject to the provisions of paragraph 6 of the First Schedule, the rate of dividend shall be determined by the Central Board.