Public Sector Banks Boost Dividend Payouts By 33% Following Record Profits

Public sector banks (PSBs) in India have reported a sharp surge in dividend payouts, disbursing Rs 27,830 crore in FY24 – a 33% increase from Rs 20,964 crore the previous year, as per government data.

Of this amount, the Centre received Rs 18,013 crore, or nearly 65%, owing to its majority stake in these institutions.

In FY23, the government’s share stood at Rs 13,804 crore.

Meanwhile, record profits posted by PSBs have driven the spike in dividends.

In FY24, 12 state-owned banks collectively recorded net profits of Rs 1.41 lakh crore, up from Rs 1.05 lakh crore in FY23.

Notably, Rs 1.29 lakh crore was earned in just the first nine months of the fiscal.

Leading the pack, the State Bank of India (SBI) posted a net profit of Rs 61,077 crore – accounting for over 40% of total PSB profits – marking a 22% rise from Rs 50,232 crore the previous year.

Punjab National Bank (PNB) saw the sharpest jump in profit among peers, rising 228% to Rs 8,245 crore.

Union Bank of India followed with a 62% increase to Rs 13,649 crore, while the Central Bank of India reported a 61% gain to Rs 2,549 crore.

Other major performers included:

• The Bank of India (Rs 6,318 crore; 57% growth),
• Bank of Maharashtra (Rs 4,055 crore; 56% growth), and
• Indian Bank (Rs 8,063 crore; 53% growth)

This turnaround is particularly notable given that PSBs had reported collective losses of Rs 85,390 crore in FY18.

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