PSBs’ Dividends Increases 33% to Rs 27,830 crore in FY24: GoI data

According to Government of India (GoI)’s latest data, Public Sector Banks (PSBs) have witness an increase of 32.7% in dividend payout to Rs 27, 830 crore in the Financial Year 2023-24 (FY24) compared to Rs 20, 964  crore recorded in FY23. This increase reflects a significant improvement in financial health of these PSBs, compared to record losses of Rs 85,390 crore registered in FY18.

• Of the total dividend received, approximately 65% (Rs 18,013 crore) was paid to GoI towards their stake in FY24.
• The data further revealed that GoI had received Rs 13,804 crore as dividend from PSBs including Mumbai(Maharashtra) based State Bank of India (SBI), India’s largest PSB, in FY23.

Key Findings:

i.Combined Net Profit of PSBs: The data highlighted that combined net profit of 12 Indian PSBs was at Rs 1.41 lakh crore in FY24 against net profit of Rs 1.05 lakh crore in FY23, and earned Rs 1.29 lakh crore in nine months (April-December) of FY25.

ii.Largest contributor to Net profit: As per the data, SBI emerged as the largest contributor to the overall net profit registered by PSBs during FY24 i.e. over 40% (Rs 61,077 crore), which marks an increase of 22% compared to previous FY (Rs 50,232 crore).

iii.Highest net profit growth in terms of percentage: Among all Indian PSBs, New Delhi (Delhi)-based Punjab National Bank (PNB) had the highest net profit growth of 228% at Rs 8,245 crore in FY24.

• It is followed by Mumbai based Union Bank of India (UBI) with 62% increase to Rs 13,649 crore and Mumbai based Central Bank of India (CBI) with a increase of 61% to Rs 2,549 crore.

iv.PSBs registered over 50% increase in net profit: Mumbai based Bank of India (BOI) with a 57% increase to Rs 6,318 crore in FY24; followed by Bank of Maharashtra (BOM) registered an increase of 56% to Rs 4,055 crore and Chennai (Tamil Nadu, TN)-based Indian Bank recorded an increase of 53% to Rs 8,063 crore.

Recent Related News:

The RBI released the Report on Trend and Progress of Banking in India 2023-24 under Section 36 (2) of the Banking Regulation Act, 1949.

• The banks witnessed a Return on Assets (RoA) of 1.4% and Return on Equity (RoE) of 14.6% in FY24.
• As per the report, net profit of scheduled commercial banks increased by 32.8% to Rs 3,49,603 crore during the last fiscal year.