Did Bank of Baroda Provide Rs 2,762 Crore as Dividend to the Government for FY25?
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Synopsis
In a significant financial move, Finance Minister Nirmala Sitharaman has received a dividend cheque of Rs 2,762 crore from Bank of Baroda, marking a notable achievement for the public sector bank for FY25. This dividend reflects the bank's strong performance and contributes to the government's fiscal health. Discover more about this impactful financial news.
Key Takeaways
- Bank of Baroda issued a dividend cheque of Rs 2,762 crore to the government.
- Net profit for Q4FY25 was Rs 5,048 crore.
- Dividend declared for FY2024-25 is Rs 8.35 per share.
- Strong performance from public sector companies enhances government finances.
- Government met its fiscal deficit target of 4.8 percent.
New Delhi, June 24 (NationPress) On Tuesday, Finance Minister Nirmala Sitharaman received a dividend cheque amounting to Rs 2,762 crore from Bank of Baroda for the financial year that concluded on March 31, 2025. The cheque was handed over by Debadatta Chand, the Managing Director and CEO of Bank of Baroda, during a meeting at her North Block office, attended by senior officials.
The government-owned Bank of Baroda recently reported a 3.3 percent increase in its standalone net profit for Q4FY25, reaching Rs 5,048 crore, compared to Rs 4,886 crore in the same quarter of the previous year. The bank also declared a dividend of Rs 8.35 per equity share for FY2024-25.
During the January–March quarter, BoB generated Rs 30,642 crore in interest income, marking a 3.6 percent rise from Rs 29,583.40 crore the previous year.
Earlier this month, Finance Minister Sitharaman also received a dividend cheque of Rs 8,076.84 crore from the State Bank of India (SBI) for the financial year 2024-25.
Prominent public sector companies in India's financial, power, and energy sectors demonstrated strong profit growth during the January-March quarter of 2024-25, which is anticipated to bolster the government's fiscal position.
The SBI and Life Insurance Corporation of India (LIC) led this growth with net profits of Rs 18,643 crore and Rs 19,013 crore, respectively. SBI's net profit for the year 2024-25 has surged to Rs 70,901 crore, while LIC reported a commendable net profit of Rs 48,151 crore.
In the energy sector, Coal India achieved a net profit of Rs 9,604 crore in the fourth quarter, while Indian Oil Corporation (IOC) recorded Rs 7,265 crore, and ONGC posted Rs 6,448 crore.
In the power sector, NTPC reported a net profit of Rs 7,897 crore, while the Power Finance Corporation (PFC), under the Ministry of Power, earned a robust Rs 8,358 crore. The Power Grid Corporation of India also saw a strong profit of Rs 4,143 crore during the January-March quarter.
In addition to contributing significantly to government finances via increased dividends, these major public sector enterprises also enhance revenue through higher corporate tax payments.
Moreover, the ambitious capital expenditure plans of these government-owned companies play a crucial role in fostering growth and creating job opportunities within the economy.
Meanwhile, the government has successfully met its fiscal deficit target for 2024-25, set at 4.8 percent of the gross domestic product (GDP) in the revised budget estimates, as per data released by the Controller General of Accounts on Friday.
According to the CGA data, the central government amassed Rs 30.36 lakh crore in revenue, covering both tax and non-tax receipts, which amounts to 98.3 percent of the revised Budget Estimates (RE). The earnings of public sector undertakings (PSUs) are a key component of these non-tax receipts.
Point of View
This development exemplifies the resilience and growth exhibited by public sector enterprises, particularly in challenging economic times. The contributions of these entities towards government revenue and fiscal stability are crucial, reflecting their importance within India's broader economic framework.
NationPress
24/06/2025
Frequently Asked Questions
What is the amount of the dividend cheque received by the Finance Minister?
The Finance Minister received a dividend cheque of Rs 2,762 crore from Bank of Baroda.
What was Bank of Baroda's net profit for Q4FY25?
Bank of Baroda reported a net profit of Rs 5,048 crore for Q4FY25.
How much dividend per equity share was declared by Bank of Baroda?
Bank of Baroda declared a dividend of Rs 8.35 per equity share for FY2024-25.
What fiscal deficit target has the government set for 2024-25?
The government has set a fiscal deficit target of 4.8 percent of GDP for 2024-25.
How does the performance of public sector companies affect the economy?
The performance of public sector companies boosts government revenue through dividends and corporate taxes, which in turn strengthens the fiscal position and aids in economic growth.
