Public Sector Banks dividend rises 33% to Rs 27,830 crore in FY24, Govt got Rs.18,013 Crore
Public sector banks (PSBs) in India have shown tremendous financial improvement, with their profits reaching record highs in the financial year 2023-24 (FY24). This success has also led to higher dividend payouts to shareholders, including the government.
What is a Dividend Payout?
A dividend payout is the money that a company (or in this case, banks) gives to its shareholders as a share of the profits. Since the government holds a major stake in public sector banks, it receives a significant portion of these dividends.
Increase in Dividend Payments
In FY24, PSBs paid ₹27,830 crore as dividends, which is 33% higher than the ₹20,964 crore paid in the previous financial year (FY23). Out of this total, the government received ₹18,013 crore, compared to ₹13,804 crore in FY23. This increase in dividend payments indicates that PSBs are earning more profits and have strong financial health.
Record-Breaking Profits
Public sector banks reported their highest-ever total profit of ₹1.41 lakh crore in FY24. This was a big jump from ₹1.05 lakh crore in FY23. In just the first nine months of FY24, they had already earned ₹1.29 lakh crore, showing how well they were performing.
Which Banks Earned the Most Profit?
Among the PSBs, State Bank of India (SBI) contributed the largest share of profits:
- SBI earned ₹61,077 crore in FY24, which is 22% higher than the ₹50,232 crore it earned in FY23.
Other public sector banks also saw big increases in profits:
- Punjab National Bank (PNB): ₹8,245 crore (228% increase)
- Union Bank of India: ₹13,649 crore (62% increase)
- Central Bank of India: ₹2,549 crore (61% increase)
- Bank of India: ₹6,318 crore (57% increase)
- Bank of Maharashtra: ₹4,055 crore (56% increase)
- Indian Bank: ₹8,063 crore (53% increase)
How Did Public Sector Banks Improve?
Public sector banks have come a long way from their difficult times in 2017-18, when they had suffered huge losses of ₹85,390 crore. The current record-breaking profits show that these banks have:
✔ Improved their management and financial strategies
✔ Reduced bad loans and increased recoveries
✔ Focused on better lending practices and digital banking
What This Means for the Economy
The improved financial health of PSBs benefits both the government and the public:
✅ Stronger banks mean better financial stability in the country.
✅ Higher profits allow banks to invest in new services and technologies.
✅ More dividend payouts to the government can be used for public welfare programs.
Conclusion
The financial year 2023-24 has been a turning point for public sector banks, as they have achieved record profits and increased dividend payouts. With better financial management and growing trust from customers, PSBs are on the path to long-term success and stability.
