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

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

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

In the previous financial year, the government had received ₹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 ₹1.41 lakh crore, compared to ₹1.05 lakh crore in FY23.

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

The SBI, India’s largest bank, contributed over 40% of the total PSB profit. The bank earned ₹61,077 crore in FY24 -- a 22% increase from ₹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%, earning ₹8,245 crore.

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

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

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

(This story was taken from a syndicated feed and was only edited for style by Gujarat Samachar Digital team)

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