Public Sector Banks Record 33% Rise in Dividend Payouts in FY24

According to government data, public sector banks (PSBs) declared a total dividend of ₹27,830 crore for FY24, marking a significant 32.7% rise from the ₹20,964 crore distributed in FY23. This sharp increase reflects the enhanced financial performance and strengthened balance sheets of PSBs.

Out of the total dividend paid, nearly 65%, approximately ₹18,013 crore, was remitted to the government in FY24, attributable to its substantial shareholding in these banks. In the previous fiscal year, the government received ₹13,804 crore as dividend from PSBs, including major contributions from the State Bank of India (SBI).

Record-Breaking Profits Fuel Higher Returns

The increase in dividend payouts coincides with the best-ever net profit figures reported by PSBs. In FY24, 12 public sector banks collectively recorded a net profit of ₹1.41 lakh crore, a steep rise from ₹1.05 lakh crore reported in FY23. For context, PSBs had already earned ₹1.29 lakh crore in just the first 9 months of the financial year, indicating robust momentum.

SBI, the largest public sector lender, led from the front, contributing over 40% of the aggregate profits with a net profit of ₹61,077 crore, a 22% increase from ₹50,232 crore in FY23.

Punjab National Bank Leads in Profit Growth

In terms of percentage growth, Punjab National Bank (PNB) outshone its peers with a staggering 228% rise in net profit, reaching ₹8,245 crore. Union Bank of India followed with a 62% growth to ₹13,649 crore, while Central Bank of India posted a 61% increase to ₹2,549 crore.

Other notable performers include:

• Bank of India: Net profit rose by 57% to ₹6,318 crore

• Bank of Maharashtra: Profit grew 56% to ₹4,055 crore

• Indian Bank: Registered a 53% jump in profit, reaching ₹8,063 crore

Conclusion

The FY24 performance marks a dramatic turnaround for PSBs. Just 6 years ago, in FY18, public sector banks had collectively posted record losses of ₹85,390 crore. The transition from deep losses to a record ₹1.41 lakh crore profit in FY24 underscores the sector’s recovery and reform-led resilience.

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