March 29, 2024 16:28 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
PM Modi to kickstart BJP's Lok Sabha poll campaign from Meerut | Kangana Ranaut in Mandi: 'Don't think I am a heroine, consider me as your sister and daughter' | Mayawati, Akhilesh Yadav demand high-level probe into Mukhtar Ansari's death | PM Modi has mastered art of manipulating democracy, hurting Constitution: Mallikarjun Kharge | Mafia-turned-politician Mukhtar Ansari dies of cardiac arrest at 63
Public sector banks to pay record Rs7,867 crore dividends to govt this year Public Sector Bank

Public sector banks to pay record Rs7,867 crore dividends to govt this year

India Blooms News Service | @indiablooms | 27 May 2022, 06:20 pm

New Delhi: State-run banks will give the government a whopping Rs7,867 crore in dividends this year, indicating better profitability and capital position, mainly due to falling stock of non-performing assets, media reports said.

Nine out of 12 public sector banks (PSBs) have paid dividends to the Centre, led by the country's largest lender State Bank of India (SBI) with Rs3,616 crore followed by Union Bank of India (UBI) with Rs1,084 crore, Economic Times reported.

Canara Bank paid Rs742.06 crore, Bank of India Rs668.26 crore, Indian Bank Rs646.50, Punjab National Bank Rs515.49, Bank of Baroda Rs397.46 crore, and Punjab & Sind BankRs 206.43 crore.

This is a huge improvement from FY21 when only SBI and Indian Bank disbursed any dividend to the government.

In 2017, PSBs had 15 percent NPAs while the Indian banking system had 11.2 percent NPAs as a whole. Gross NPAs for PSBs have since declined to 7.9 percent at the end of December 2021, it added.

The higher dividend from PSBs is a little relief for the Centre, owing to a gap in its balance sheet after the Reserve Bank of India said it will transfer Rs30,307 crore to the government as surplus, lower than the Rs74,000 crore budgeted.

It is expected that dividends will continue to flow from PSBs to the government as business prospects get better.  
 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.