Impact of profitability on dividend policy of public and private sector bank in India

Several theories have been documented on the relevance and irrelevance of dividend policy. Many authors continue to come up with different findings from their studies on the relevance of dividend policy. The main thrust of this study is to find out the relationship between dividend per Share and banks return on net worth among public and private bank. The target population for this study was nationalised public bank and private bank of India. Random data sampling has been made in the study researcher randomly select Bank of Baroda from nationalised bank and Industrial Credit and Investment Corporation of India (ICICI) from private bank. The period of study would be five years from 2013 to 2017. The secondary data were obtained from the annual report of the related banks. Data analysed done with aid of statistical package for social science software. The study found a significant and positive relationship between return on net worth and dividend per share.