Public sector Banks may witness 30 percent surge in dividend payment to government

The total dividends from PSBs are estimated at Rs 18,013 crore for FY24, which is noted to be a significant increase from Rs 13,804 crore in FY23, reflecting their robust financial performance.

Public sector Banks may witness 30 percent surge in dividend payment to government

To enhance the country's revenue growth, the Public sector banks (PSBs) are expected to deliver approximately 30% higher dividends to the government in FY24 compared to the previous fiscal year.

The total dividends from PSBs are estimated at Rs 18,013 crore for FY24, which is noted to be a significant increase from Rs 13,804 crore in FY23, reflecting their robust financial performance.

Top Dividend Contributors among PSBs-

Leading dividend payout list is dominated by  State Bank of India (SBI), Bank of Baroda (BoB), Canara Bank, and Indian Bank, all declaring sufficient dividends relative to face value.

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Notably, SBI’s dividend, the highest among PSBs, stands at Rs 13.70 per equity share for FY24, contributing about 39% to the total PSB dividend payout to the government.

The total worth of PSBs collectively witnessed a substantial growth in net profit, soaring approximately 37% year-on-year to Rs 1,41,203 crore in FY24.

The impressive performance underscores the sector’s resilience and profitability amidst challenging economic conditions.

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The BoB’s dividend at Rs 7.60 per equity share (380% on face value Rs 2) ranks as the second highest among PSBs, followed by Canara Bank’s dividend of Rs 16.10 per equity share (161% on face value of Rs10).

Similarly, the Indian Bank also recommended a significant dividend of Rs 12 per equity share (120%), solidifying its position among top dividend contributors.

The significant contribution of PSBs to dividend payout plays a vital role in fostering the nation's economic revenue growth.

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