The Central Bank of India has paid Rs 969.64 Crore Dividend to the Government of India for FY26.
Central Bank of India has declared and paid the fourth interim dividend at the rate of 6% for the financial year 2025-26. With this, the bank’s total interim dividend for FY 2025-26 has reached 12%, including 6% interim dividend declared during the first three quarters of the financial year. The total dividend payout to the Government of India for FY 2025-26 stands at ₹969.64 crore.
Shri Kalyan Kumar, Managing Director and CEO of Central Bank of India, along with Executive Directors Shri M. V. Murali Krishna, Shri Mahendra Dohare and Shri E. Ratan Kumar, today presented the fourth interim dividend cheque of ₹484.82 crore payable to the Government of India to Union Finance Minister Nirmala Sitharaman at the Ministry of Finance in New Delhi. The cheque presentation ceremony was also attended by Smt. Shalini Pandit, Joint Secretary, Department of Financial Services, Ministry of Finance, Government of India, and Shri Shishram Tundwal, General Manager, Central Bank of India.
Why Banks pays dividend?
Banks pay dividends to distribute a part of their profits to shareholders. When a bank earns a profit, it does not keep the entire amount for itself. A portion of the profit may be paid to shareholders as a dividend, while the remaining amount is retained for business growth, capital requirements, and future operations. In the case of public sector banks, the Government of India is usually the largest shareholder. Therefore, when a bank declares a dividend, a significant portion of the dividend is paid to the government. Dividend payments also reflect the bank’s strong financial performance and provide income to shareholders for their investment in the bank.
The Government shareholding in Banks is as follows:
| Bank Name | Govt Stake (Dec 25) | Govt Stake (June 24) |
|---|---|---|
| State Bank of India | 55.50% | 57.54% |
| Canara Bank | 62.93% | 62.93% |
| Bank of Baroda | 63.97% | 63.97% |
| Punjab National Bank | 70.08% | 70.08% |
| Bank of India | 73.38% | 73.38 |
| Indian Bank | 73.84% | 73.84% |
| Union Bank of India | 74.76% | 74.76% |
| Bank of Maharashtra | 73.60% | 86.46% |
| UCO Bank | 90.95% | 95.39% |
| Central Bank of India | 89.27% | 93.08% |
| Indian Overseas Bank | 92.44% | 96.38% |
| Punjab & Sind Bank | 93.85% | 98.25 |
