Dividend Payments by Public Sector Banks Surge by 33% in FY24: Government
Click to start listening
Synopsis
Public sector banks in India have seen a remarkable financial uplift as their dividend payouts surged by 33% to Rs 27,830 crore in FY24, reflecting strong profitability and significant government returns.
Key Takeaways
- Dividend payouts increased by 33% to Rs 27,830 crore.
- Government received 65% of total dividends.
- 12 PSBs reported highest-ever net profit of Rs 1.41 lakh crore.
- SBI contributed over 40% of total PSB profit.
- Remarkable recovery from Rs 85,390 crore losses in FY18.
New Delhi, March 23 (NationPress) Public sector banks (PSBs) in India have demonstrated considerable financial enhancement, with their dividend payouts soaring by 33 percent to Rs 27,830 crore in the fiscal year 2023-24.
This marks a substantial increase from Rs 20,964 crore in the prior fiscal year, according to government data.
Of the total dividends distributed, nearly 65 percent, or Rs 18,013 crore, was allocated to the government, underscoring its significant stake in these institutions.
In the preceding financial year, the government received Rs 13,804 crore as dividends from the PSBs, which include the State Bank of India (SBI).
The uptick in dividend distributions is attributed to record profits reported by public sector banks, as stated in the data.
In FY24, 12 PSBs collectively achieved their highest-ever net profit of Rs 1.41 lakh crore, compared to Rs 1.05 lakh crore in FY23.
During the initial nine months of FY24 alone, these banks had already recorded a profit of Rs 1.29 lakh crore.
The SBI, being India’s largest bank, contributed over 40 percent of the total PSB profit. The bank reported earnings of Rs 61,077 crore in FY24—a 22 percent increase from Rs 50,232 crore in the previous year.
Among the banks with the fastest growth in net profit, Punjab National Bank (PNB) saw the highest growth of 228 percent, earning Rs 8,245 crore.
Union Bank of India experienced a 62 percent increase in profit, amounting to Rs 13,649 crore, while Central Bank of India witnessed a 61 percent rise to Rs 2,549 crore.
Other notable banks with over 50 percent profit growth included Bank of India (57 percent growth to Rs 6,318 crore), Bank of Maharashtra (56 percent rise to Rs 4,055 crore), and Indian Bank (53 percent growth to Rs 8,063 crore).
This impressive turnaround in the financial performance of PSBs is particularly noteworthy, considering these banks had incurred substantial losses of Rs 85,390 crore in FY18.
