Your Bank has had a track record of moderate but steady increases in dividend declarations for the last 10 years and dividend payout ratio in the last few years has been in the range of 20-25 %. Your Bank's dividend policy is based on the need to balance the twin objectives of appropriately rewarding shareholders with cash dividends and of retaining capital to maintain a healthy capital adequacy ratio to support future growth. In line with this policy and recognisation of healthy performance during 2007-08, your directors pleased to recommend a dividend of 85% for the year ended on March 31,2008 as against 70% for the year ended March 31, 2007. This dividend shall be subject to distribution tax to be paid by the Bank but will be tax-free in the hands of the members.