Public sector banks' dividend payout rises 33 pc in FY24: Centre
Public sector banks in India have shown significant financial improvement, as their dividend payouts increased by 33 per cent to INR 27,830 crore in the financial year 2023-24
- NEW DELHI — Public
sector banks (PSBs) in India have shown significant financial improvement, as
their dividend payouts increased by 33 per cent to INR 27,830 crore in the
financial year 2023-24.
-
- This is a sharp rise from INR 20,964 crore in the previous
fiscal, according to government data.
-
- Out of the total dividend paid, nearly 65 per cent, or INR
18,013 crore, went to the government, reflecting its major stake in these
banks.
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- In the previous financial year, the government had received
INR 13,804 crore as dividends from the PSBs, including the State Bank of India
(SBI).
-
- The rise in dividend payouts comes on the back of record
profits reported by public sector banks, the data said.
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- In FY24, 12 PSBs collectively earned their highest-ever net
profit of INR 1.41 lakh crore, compared to INR 1.05 lakh crore in FY23.
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- During the first nine months of FY24 alone, these banks had
already earned INR 1.29 lakh crore in profit.
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- The SBI, India’s largest bank, contributed over 40 per cent
of the total PSB profit. The bank earned INR 61,077 crore in FY24 -- a 22 per
cent increase from INR 50,232 crore in the previous year.
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- Among the fastest-growing banks in terms of net profit, the
Punjab National Bank (PNB) recorded the highest growth of 228 per cent, earning
INR 8,245 crore.
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- The Union Bank of India’s profit rose 62 per cent to INR
13,649 crore, while the Central Bank of India saw a 61 per cent increase,
reaching INR 2,549 crore.
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- Other banks with over 50 per cent profit growth included the
Bank of India (57 per cent growth to INR 6,318 crore), the Bank of Maharashtra
(56 per cent rise to INR 4,055 crore), and the Indian Bank (53 per cent growth
to INR 8,063 crore).
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- This remarkable turnaround in the PSBs’ financial
performance is significant, considering that these banks had recorded massive
losses of INR 85,390 crore in FY18.
