Hero Honda in a filling to the Bombay Stock Exchange (BSE) said that company has decided to announce an interim dividend at the rate of 3,500 per cent that is Rs 70 per equity share of Rs 2 each.

But the company has not made clear about the capital expenditure incurred to do this exercise and other details regarding the period for the dividend.

Chief Financial Officer Ravi Sud remained unanswered on repeated calls. In the late-afternoon today, on the BSE, shares were trading 6.28 per cent up at Rs 1,742 a piece.

This is not the first time when company has declared such dividend, last year in March the company declared a Silver Jubilee Special Dividend of 4,000 per cent or Rs 80 per equity share of Rs 2 each.

The company in 2009 declared that it is having a huge cash reserve of over Rs 4,000 crore and company has many options to use the fund including special dividend to its shareholders or expanding capacity.

Hero Honda's net profit during the nine month period from April –December 2010, fell by 13 percent to Rs 1,426.29 crore from Rs 1,633.02 crore a year ago.