Public Sector Banks' Dividend Surge Highlights Financial Turnaround

In FY24, public sector banks (PSBs) reported a 33% surge in dividend payouts, amounting to Rs 27,830 crore. This signifies a substantial improvement in financial health. Notably, PSBs' net profits reached a record high, with SBI contributing a significant portion. Major profit growth was seen across key banks.

The financial landscape for public sector banks (PSBs) has witnessed an impressive transformation, as indicated by a 33% increase in dividend payouts, rising to Rs 27,830 crore in the fiscal year 2024. This surge in dividends signifies a marked improvement in the financial well-being of these government-backed lenders.

During the fiscal year 2023-24, PSBs declared a total dividend of Rs 27,830 crore, marking a 32.7% increase from Rs 20,964 crore in the previous year. Of this total, approximately 65% or Rs 18,013 crore was distributed to the government, reflecting its substantial shareholding.

In FY24, 12 public sector banks achieved a record aggregate net profit of Rs 1.41 lakh crore, with the State Bank of India (SBI) alone accounting for over 40% of this figure. SBI's profit surged by 22% to Rs 61,077 crore. Notably, Punjab National Bank recorded the highest percentage increase in net profit at 228%.

(With inputs from agencies.)