law: Banking Regulation Act, 1949
  15. Restrictions as to payment of dividend
  [(1)] No banking company shall pay any
  
  dividend on its shares until all its capitalized expenses (including
  
  preliminary expenses, organization expenses, share selling commission,
  
  brokerage, amounts of losses incurred and any other item of expenditure not
  
  represented by tangible assets) have been completely written off.
  [(2) Notwithstanding anything to the contrary
  
  contained in sub-section (1) or in the Companies Act, 1956 (1 of 1956), a
  
  banking company may pay dividends on its shares without writing off-
  (i) the depreciation,
  
  if any, in the value of its investments in approved securities in any case
  
  where such depreciation has not actually been capitalized or otherwise
  
  accounted for as a loss;
  (ii) the depreciation,
  
  if any, in the value of its investments in shares, debentures or bonds (other
  
  than approved securities) in any case where adequate provision for such
  
  depreciation has been made to the satisfaction of the auditor of the banking
  
  company;
  (iii) the bad debts,
  
  if any, in any case where adequate provision for such debts has been made to
  
  the satisfaction of the auditor of the banking company.]