As per Banking Regulation Act,1949 ,a banking company can pay dividend only on satisfying following condition except:
AAll its capitalised expenses havebeen completely written off
Bprovisioning 25% of net profit to a risk reverse fund
Cadequate provision for bad debts has been made to the satisfaction of the auditor of the bank.
Dwriting of the depreciation in the value of investments in approved securities which are actually been capitalised or accounted as a loss