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.
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.
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.
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.
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.
A Multinational Corporation, or MNC, is a large company with business operations in multiple countries.…
The first newspaper in India, Hicky’s Bengal Gazette, was founded by James Augustus Hicky in…
Anousheh Ansari is an influential Iranian-American engineer, entrepreneur, and space traveler. Born on September 12,…
October, the tenth month of the year, is a month packed with globally significant days,…
Earth is set to welcome a temporary "mini-moon" in the form of a small asteroid…
On the occasion of World Tourism Day, the Ministry of Tourism launched "Paryatan Mitra" and…