State Bank of India (SBI) on Monday presented a dividend cheque of Rs 8,813 crore for FY2025-26 to Union Finance Minister Nirmala Sitharaman.
The cheque was handed over by SBI Chairman C S Setty to the Finance Minister, according to the Ministry of Finance.”Smt Nirmala Sitharaman receives a dividend cheque of Rs 8,813 crore for FY 2025-26 from Shri C S Setty, Chairman, SBI,” the Ministry of Finance said in a post on X.
The payout comes after SBI reported robust earnings and business growth for FY26. Earlier, the bank’s Central Board declared a dividend of Rs 17.35 per equity share for the financial year ended March 31, 2026. The Government of India is SBI’s largest shareholder, holding around 55 per cent stake in the bank.
Why Banks pay dividend to Govt?
Banks pay dividends to distribute a portion of their profits to shareholders as a return on their investment. After earning profits from loans, investments, and other banking services, a bank sets aside funds for expenses, taxes, regulatory requirements, and future growth.
The remaining profit may be shared with shareholders in the form of dividends. In the case of State Bank of India (SBI), the Government of India is the largest shareholder, so it receives the largest share of the dividend.
SBI recently paid ₹8,813 crore as dividend to the government because the government owns a majority stake in the bank. Paying dividends also reflects a bank’s strong financial performance and rewards shareholders while maintaining sufficient capital for future operations and expansion.
In another update, 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. Click here to read this news.
