Public sector banks’ dividend rises 33 pc to ₹27,830 cr in FY24

New Delhi, Mar 23 (PTI) Dividend payout by public sector banks (PSBs) have risen by 33 per cent to ₹27,830 crore in FY24, indicating significant improvement in financial health of these lenders.

PSBs declared a dividend of ₹27,830 crore to shareholders in 2023-24 as against ₹20,964 crore in the previous fiscal, registering an increase of 32.7 per cent, according to the government data.

Of ₹27,830 crore total dividend, nearly 65 per cent or ₹18,013 crore was paid to the government towards their shareholding in FY24.

During 2022-23, the government received ₹13,804 crore as dividend from the public sector banks including State Bank of India (SBI).

It is to be noted that 12 public sector banks recorded the highest ever aggregate net profit of ₹1.41 lakh crore in 2023-24 against the net profit of ₹1.05 lakh crore in 2022-23, and earned ₹1.29 lakh crore in the nine months of the current financial year.

Out of the total profit of ₹1,41,203 crore earned during FY24, market leader SBI alone contributed over 40 per cent, as per the published numbers on exchanges.

SBI earned a profit of ₹61,077 crore, 22 per cent higher than the previous financial year ( ₹50,232 crore).

In percentage terms, Delhi-based Punjab National Bank had the highest net profit growth of 228 per cent at ₹8,245 crore, followed by Union Bank of India with a 62 per cent rise to ₹13,649 crore and Central Bank of India with a 61 per cent increase to ₹2,549 crore.

Among the banks which recorded over 50 per cent jump in net profit included Bank of India with a 57 per cent growth to ₹6,318 crore while Bank of Maharashtra with a 56 per cent rise to ₹4,055 crore and Chennai-based Indian Bank recorded a 53 per cent improvement to ₹8,063 crore.

PSB is a turnaround story from record losses of ₹85,390 crore in FY18 to the record profit in FY24.