State Financial Corporations Act, 1951
35. Disposal of profits
(1) The Financial Corporation shall establish a reserve fund.
(2) After making provision for bad and doubtful debts,
depreciation of assets and all other matters which are usually provided for by
banking companies, the Financial Corporation may out of its net annual profits
declare a dividend:
PROVIDED that for so long as the reserve fund is less
than the paid-up share capital of the Financial Corporation and until there has
been repaid to the State Government such sum, if any, as that Government may
have paid under guarantee given in pursuance of section 6, or section 7 or
section 8, the rate of such dividend shall not exceed the rate guaranteed by
the State Government under section 6.