SBI Pays ₹8,076.84 Crore Dividend to Government for FY25

In a major boost to the government’s non-tax revenue, the State Bank of India (SBI), the country’s largest public sector lender, has paid a dividend of ₹8,076.84 crore for the financial year 2024-25. The dividend cheque was formally handed over to Finance Minister Nirmala Sitharaman by SBI Chairman C.S. Setty on Monday, underscoring the bank’s robust financial performance and its key role in supporting the government’s fiscal resources.

Dividend Payout: A Generous Contribution to the Exchequer

The ₹8,076.84 crore dividend represents SBI’s share of profits distributed to its majority shareholder—the Government of India. This payment is significantly higher than the ₹6,959.29 crore paid last year for FY24.

The increase in dividend reflects the bank’s improved earnings and its commitment to shareholder value creation. SBI declared a dividend of ₹15.90 per share for FY25, compared to ₹13.70 per share in the previous fiscal year.

Presentation of the Cheque: A Formal Ceremony

The cheque presentation was held in the presence of senior government officials, including:

Finance Minister Nirmala Sitharaman
Financial Services Secretary M. Nagaraju
Finance Secretary Ajay Seth

This ceremonial act is a symbolic gesture of transparency, fiscal partnership, and public accountability, reinforcing the connection between public sector undertakings and the government’s budgetary operations.

Record Financial Performance in FY25: SBI’s Profit Surge

Highest-Ever Net Profit

SBI’s record net profit of ₹70,901 crore for FY2024-25 is a 16% increase from the ₹61,077 crore earned in the preceding financial year. This remarkable growth demonstrates the bank’s strong operational efficiency, effective asset management, and expansion across retail, digital, and corporate banking segments.

This profit milestone enabled the bank to significantly enhance its dividend payout capacity, rewarding both institutional and retail investors.

Dividend as a Reflection of Financial Health

Dividend payouts are a reflection of a company’s confidence in its earnings stability and capital position. By raising its dividend to ₹15.90 per share, SBI signals to the markets and its shareholders that it remains financially sound, profitable, and growth-oriented.

The Government’s Stake and Fiscal Implications

As the majority shareholder in SBI, the Government of India benefits directly from the bank’s performance through dividends. Such receipts are crucial to the government’s non-tax revenue, helping it meet budgetary targets without increasing borrowing or imposing new taxes.

In a year marked by increased spending on infrastructure, welfare schemes, and capital investments, such dividend inflows serve as important fiscal support tools.