Govt likely to get $1.8 billion dividend from public sector banks in FY25
State-run banks are supposed to have huge profit benefits exceeding $12 billion in the current fiscal year driven by strong credit demand.
Approximately $2 billion profit dividend is presumed by government authorities to be gained during the next fiscal year through public sector banks. State-run banks are supposed to have huge profit benefits exceeding $12 billion in the current fiscal year driven by strong credit demand.
The government indeed has taken serious steps to strengthen state banks including merging weaker banks with stronger ones and a bankruptcy law, to recover money from defaulters while issuing more than Rs 3.3 trillion to recapitalize stressed banks. Public sector banks have raised Rs 430 billion through markets in the current fiscal year as compared to the accommodated capital of all last fiscal years, around Rs 450 billion.Read Also : Tips for Managing Teeth Sensitivity
While representing the interim budget, Finance Minister Nirmala Sitharaman had estimated the government would receive Rs 1.02 trillion [$12.3 billion] in dividends from the Reserve Bank of India, state banks, and financial institutions in FY25, compared to 1.04 trillion in the current fiscal year. The Reserve Bank of India transferred Rs 874.16 billion in dividends to the government in the current fiscal year.
As per official experts, the government expects to receive at least Rs 150 billion in dividends from state banks in 2024-25, up 8.7% or more from an expected Rs 138 billion in the current fiscal year ending in March.Read Also : Coal India signs JV Agreement with BHEL
The 12 PSBs have total reported net profits of around Rs 980 billion in the last nine months ending December. Meanwhile, the asset quality of state banks also has improved over the years with gross NPAs declining to 3.2% in September 2023, from 9.6% in the March 2017 quarter.Read Also : NCL exceeds 125 million tonnes of coal production
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