Oct. 31: Cairn India, majority owned by Anil Agarwal’s Vedanta Group, today declared its maiden dividend of Rs 5 per share.

The interim cash dividend of Rs 5 on a face value of Rs 10 per share “is proposed to be paid on or before November 15, 2012, to shareholders on record as on November 6, 2012,” the company said.

For Cairn India, which had a net cash of Rs 12,442.7 crore as on September 30, this maiden dividend will entail a payout Rs 1,109 crore, including a dividend distribution tax of Rs 155 crore. Vedanta Group, which holds 58.82 per cent in Cairn India, will get Rs 561.35 crore from the dividend.

Cairn said it was now well positioned to grow by building a balanced portfolio of assets and resources.

“While deciding the amount of payout, the twin objective of stable dividend payout and investment for growth has been kept in view by the board,” the statement said.

Soon after Vedanta bought a majority stake in Cairn Energy Plc of the UK, Cairn India in April approved a dividend policy of around 20 per cent of annual consolidated net profits.

“The payment of dividend was subject to the completion of corporate reorganisation, which has occurred on October 18,” the statement added.

IDBI Bank net

Public sector lender IDBI Bank has reported a 6.3 per cent drop in net profit at Rs 483.5 crore in the second quarter of this fiscal on the back of additional provisioning for pensions.        

Net profit stood at at Rs 516 crore in the year-ago period.        

Total income rose 9.5 per cent to Rs 6,880 crore in July-September from Rs 6,282 crore in the same period a year ago.

Total business rose 5 per cent to Rs 3,46,457 crore from Rs 3,29,916 crore reported a year earlier.

Deposits grew 3 per cent to Rs 1,80,087 crore, while advances grew 7 per cent to Rs 1,66,370 crore.

Meanwhile, the bank today slashed interest on home loans by 0.25 per cent and the deposit rates in select brackets by up to 0.50 per cent.

Home loans of up to Rs 75 lakh will be available on a par with its base rate at 10.50 per cent, while those above Rs 75 lakh will have 0.25 per cent more in interest over the base rate.