Public sector banks (PSBs) in India have shown significant financial improvement, as their dividend payouts increased by 33 per cent to Rs 27,830 crore in the financial year 2023-24.

This is a sharp rise from Rs 20,964 crore in the previous fiscal, according to government data.

Advertisement

Out of the total dividend paid, nearly 65 per cent, or Rs 18,013 crore, went to the government, reflecting its major stake in these banks.

In the previous financial year, the government had received Rs 13,804 crore as dividends from the PSBs, including the State Bank of India (SBI).

The rise in dividend payouts comes on the back of record profits reported by public sector banks, the data said.

In FY24, 12 PSBs collectively earned their highest-ever net profit of Rs 1.41 lakh crore, compared to Rs 1.05 lakh crore in FY23.

During the first nine months of FY24 alone, these banks had already earned Rs 1.29 lakh crore in profit.

The SBI, India’s largest bank, contributed over 40 per cent of the total PSB profit. The bank earned Rs 61,077 crore in FY24 — a 22 per cent increase from Rs 50,232 crore in the previous year.

Among the fastest-growing banks in terms of net profit, the Punjab National Bank (PNB) recorded the highest growth of 228 per cent, earning Rs 8,245 crore.

The Union Bank of India’s profit rose 62 per cent to Rs 13,649 crore, while the Central Bank of India saw a 61 per cent increase, reaching Rs 2,549 crore.

Other banks with over 50 per cent profit growth included the Bank of India (57 per cent growth to Rs 6,318 crore), the Bank of Maharashtra (56 per cent rise to Rs 4,055 crore), and the Indian Bank (53 per cent growth to Rs 8,063 crore).

This remarkable turnaround in the PSBs’ financial performance is significant, considering that these banks had recorded massive losses of Rs 85,390 crore in FY18.