Govt will Receive 30% More Dividend From Public Sector Banks in FY24

Public sector banks (PSBs) are poised 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 ₹18,013 crore for FY24, a significant uptick from ₹13,804 crore in FY23, reflecting their robust financial performance.

Top Dividend Contributors

Leading the dividend payout list are State Bank of India (SBI), Bank of Baroda (BoB), Canara Bank, and Indian Bank, all declaring handsome dividends relative to face value. Notably, SBI’s dividend, the highest among PSBs, stands at ₹13.70 per equity share for FY24, contributing about 39% to the total PSB dividend payout to the government.

Strong Financial Performance

PSBs collectively witnessed a substantial growth in net profit, soaring approximately 37% year-on-year to ₹1,41,203 crore in FY24. This impressive performance underlines the sector’s resilience and profitability amidst challenging economic conditions.

Dividend Highlights

BoB’s dividend at ₹7.60 per equity share (380% on face value ₹2) ranks as the second highest among PSBs, followed by Canara Bank’s dividend of ₹16.10 per equity share (161% on face value of ₹10). Indian Bank also recommended a significant dividend of ₹12 per equity share (120%), solidifying its position among top dividend contributors.

Sector Outlook

Despite a revision in the banking sector outlook from “Positive” to “Stable” by ICRA, the expectation of moderation in credit growth and profitability metrics remains positive. While interest margin compression and potential rate cuts in FY25 may exert pressure, steady operating profits fueled by a growing loan book are anticipated to sustain healthy earnings.

Akansha Arora

My role as a content writer specializing in current affairs at Adda247 involves meticulously researching and crafting compelling articles aimed at guiding and informing candidates preparing for National and State Level Competitive Government Exams. With a dedication to educational excellence, I strive to keep our candidates abreast of the latest developments and trends in current affairs. By providing insightful and engaging content, I aim to ensure that aspiring candidates are well-prepared and informed for their examinations.

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