Public Sector Banks See 33 Per Cent Surge In Dividends In FY24, SBI Drives Profit Growth
Twelve Public sector banks collectively achieved their highest-ever net profit in FY24, posting Rs 1.41 lakh crore. This represented a substantial increase from Rs 1.05 lakh crore in FY23.
Public sector banks (PSBs) witnessed a notable increase in dividend payouts during the financial year 2023-24 (FY24), reflecting improved financial performance. According to government data, the total dividend declared by PSBs amounted to Rs 27,830 crore, marking a 32.7 per cent rise compared to Rs 20,964 crore disbursed in the previous fiscal.
Out of this total, the government received Rs 18,013 crore, accounting for nearly 65 per cent of the dividends due to its shareholding in these banks. In contrast, the dividend paid to the government in FY23 stood at Rs 13,804 crore, including contributions from the State Bank of India (SBI), reported PTI.
Record-Breaking Profit Growth Among PSBs
Twelve Public sector banks collectively achieved their highest-ever net profit in FY24, posting Rs 1.41 lakh crore. This represented a substantial increase from Rs 1.05 lakh crore in FY23.
SBI remained the leading contributor, accounting for over 40 per cent of the total profit in FY24. The bank reported a net profit of Rs 61,077 crore in the fiscal under review, reflecting a 22 per cent increase from Rs 50,232 crore in the previous year.
In the first nine months of the current fiscal year, PSBs earned Rs 1.29 lakh crore, indicating strong financial momentum.
Several other PSBs also recorded significant growth in net profit. Punjab National Bank (PNB) achieved the highest percentage increase, with a 228 per cent jump to Rs 8,245 crore. Union Bank of India followed with a 62 per cent rise to Rs 13,649 crore, while the Central Bank of India saw a 61 per cent increase, reaching Rs 2,549 crore.
Banks that reported over 50 per cent growth in net profit included Bank of India (57 per cent increase to Rs 6,318 crore), Bank of Maharashtra (56 per cent rise to Rs 4,055 crore), and Indian Bank (53 per cent increase to Rs 8,063 crore).
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The strong financial performance of PSBs in FY24 marked a significant turnaround from the heavy losses recorded in previous years. In FY18, these banks reported a collective loss of Rs 85,390 crore. The transition from losses to record-breaking profits underscored the improvement in their financial stability and operational efficiency of public sector lenders.
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