Public sector banks (PSBs) have reported a significant 33% rise in their dividend payouts, which have reached Rs 27,830 crore in FY24, reflecting a notable improvement in their financial performance. The total dividend declared by PSBs in 2023-24 was Rs 27,830 crore, compared to Rs 20,964 crore in the previous fiscal year, marking a 32.7% increase, according to official government data.
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Of this total, Rs 18,013 crore, or nearly 65%, was paid to the government, reflecting its shareholding in the banks for FY24. In comparison, during FY23, the government received Rs 13,804 crore in dividends from public sector banks, including the State Bank of India (SBI).
The financial turnaround of PSBs is underscored by their highest-ever collective net profit of Rs 1.41 lakh crore in FY24, up from Rs 1.05 lakh crore in FY23. Notably, PSBs earned Rs 1.29 lakh crore in the first nine months of the current financial year alone. SBI, the market leader, contributed more than 40% of the total profit, earning Rs 61,077 crore, which marks a 22% increase from Rs 50,232 crore in FY23.
Among the PSBs showing the most impressive growth in net profit, Punjab National Bank (PNB) led the pack with an outstanding 228% increase, posting Rs 8,245 crore. Union Bank of India followed with a 62% rise to Rs 13,649 crore, while Central Bank of India recorded a 61% growth, reaching Rs 2,549 crore.
Several other banks also showed robust performances. Bank of India saw a 57% increase in net profit to Rs 6,318 crore, while Bank of Maharashtra reported a 56% rise to Rs 4,055 crore. Indian Bank, based in Chennai, also posted a 53% improvement, earning Rs 8,063 crore.
The remarkable performance of PSBs stands as a striking turnaround from their record losses of Rs 85,390 crore in FY18 to a record profit in FY24, marking a significant shift in the sector’s financial health.
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