State Bank of India Act, 1955
38. Disposal of profits
(1) After making provision for bad and doubtful debts, depreciation
in assets, equalization of dividends, contribution to staff and superannuation
funds and for all other matters for which provision is necessary by or under
this Act or which are usually provided for by Banking companies, the State Bank
may, out of its net profits, declare a dividend.
(2) Subject to the provision of paragraph 6 of the First
Schedule, the rate of dividend shall be determined by the Central Board.