Did the Govt Receive Rs 5,304 Crore as Dividend from 3 Public Sector Banks for FY25?
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Synopsis
The Indian government has received a significant dividend of Rs 5,304 crore from three public sector banks, showcasing robust growth in the financial sector. This move is expected to further strengthen the fiscal position of the government amidst ongoing economic recovery efforts.
Key Takeaways
- The Indian government received Rs 5,304 crore in dividends from three public sector banks.
- These cheques were presented by key bank officials to Finance Minister Nirmala Sitharaman.
- Recent profits from major public sector companies indicate strong financial health.
- The fiscal deficit target for 2024-25 has been successfully met.
- Public sector enterprises play a crucial role in boosting government revenue.
New Delhi, July 8 (NationPress) On Tuesday, Finance Minister Nirmala Sitharaman accepted dividend cheques totaling Rs 5,304 crore from three public sector banks, representing the financial year that concluded on March 31, 2025.
The first cheque of Rs 2,335 crore for FY 2024-25 was handed over to the Finance Minister at her North Block office by Ashok Chandra, MD and CEO of Punjab National Bank. Meanwhile, Rajneesh Karnatak, MD & CEO of Bank of India, presented a cheque worth Rs 1,353 crore. The final cheque of Rs 1,616 crore for FY 2024-25 was also presented by Binod Kumar, MD & CEO of Indian Bank.
These dividends follow substantial payouts from the State Bank of India and Bank of Baroda, which amounted to Rs 8,076.84 crore and Rs 2,762 crore, respectively, last month.
During the January-March quarter of 2024-25, India’s leading public sector companies in finance, power, and energy sectors reported significant profit growth, which is projected to enhance the government's fiscal health.
The State Bank of India (SBI), the country’s largest lender, and the Life Insurance Corporation of India (LIC), a major insurance player, recorded impressive net profits of Rs 18,643 crore and Rs 19,013 crore, respectively. SBI's net profit for FY 2024-25 has surged to Rs 70,901 crore, while LIC reported a remarkable Rs 48,151 crore.
In the energy sector, Coal India achieved a net profit of Rs 9,604 crore during the fourth quarter, and Indian Oil Corporation (IOC) posted Rs 7,265 crore. ONGC, a leading oil exploration company, registered a net profit of Rs 6,448 crore.
Additionally, in the power sector, NTPC, the largest electricity producer, reported a net profit of Rs 7,897 crore, while Power Finance Corporation (PFC) earned Rs 8,358 crore. Power Grid Corporation of India also recorded a solid profit of Rs 4,143 crore in the January-March quarter.
These significant dividend contributions not only bolster the government's finances but also facilitate increased corporate tax revenues.
The extensive capital expenditure plans of these state-owned enterprises play a pivotal role in stimulating economic growth and job creation.
Moreover, the government has successfully achieved its fiscal deficit target for 2024-25, set at 4.8 percent of the gross domestic product (GDP) as per revised budget estimates, according to data released by the Controller General of Accounts.
As reported by the CGA, the central government amassed Rs 30.36 lakh crore in total revenue from both tax and non-tax sources, which represents 98.3 percent of the revised Budget Estimates (RE). The earnings from public sector undertakings (PSUs) form a crucial part of these non-tax revenues.
Point of View
The recent dividend payments from public sector banks signify a robust fiscal strategy. The government's ability to harness profits from these enterprises showcases a commitment to economic stability and growth. Such initiatives are vital for maintaining public trust and enhancing overall financial health.
NationPress
19/07/2025
Frequently Asked Questions
What is the total dividend amount received by the government?
The government received a total dividend of Rs 5,304 crore from three public sector banks.
Which banks contributed to the dividend?
The dividends were received from Punjab National Bank, Bank of India, and Indian Bank.
What was the impact of these dividends on government finances?
These dividends are expected to bolster the government's fiscal position and enhance revenue from corporate taxes.
How do these dividends affect the economy?
The dividends contribute to the government's ability to invest in growth initiatives and create jobs, supporting economic recovery.
What are the fiscal deficit targets for 2024-25?
The government has set a fiscal deficit target of 4.8 percent of GDP for the year 2024-25.
