PSBs Witness Record Dividend Payout and Profit Surge in FY24

Public Sector Banks (PSBs) in India have showcased a remarkable turnaround in their financial health, registering a record-breaking dividend payout and net profit for the fiscal year 2023-24.

According to government data, the total dividend payout by PSBs surged by 33% to reach Rs 27,830 crore in FY24, compared to Rs 20,964 crore in the previous financial year. The government, being the majority shareholder in these banks, received a hefty Rs 18,013 crore, marking a significant increase from Rs 13,804 crore in FY23.

This surge in dividend payout aligns with the phenomenal financial performance of the 12 public sector banks, which collectively recorded their highest-ever net profit of Rs 1.41 lakh crore in FY24. This marks a steep rise from Rs 1.05 lakh crore in FY23, indicating robust growth in the banking sector.

SBI Leads the Profit Charge

State Bank of India (SBI), the country’s largest lender, contributed over 40% of the total net profit, earning Rs 61,077 crore in FY24—up by 22% from Rs 50,232 crore in FY23. SBI's strong financial footing underscores its dominance in the banking landscape.

Stellar Growth Across PSBs

Several PSBs reported extraordinary growth in net profit, with Punjab National Bank (PNB) leading the charge with a staggering 228% increase, reaching Rs 8,245 crore.

Other banks that posted impressive gains include:

• Union Bank of India: 62% rise to Rs 13,649 crore

• Central Bank of India: 61% jump to Rs 2,549 crore

• Bank of India: 57% surge to Rs 6,318 crore

• Bank of Maharashtra: 56% increase to Rs 4,055 crore

• Indian Bank: 53% growth to Rs 8,063 crore

A Historic Turnaround

The resurgence of PSBs is nothing short of a historic turnaround. From record losses of Rs 85,390 crore in FY18, public sector banks have staged a spectacular recovery, hitting record profits in FY24. This transformation highlights the effectiveness of banking sector reforms, improved asset quality, and disciplined financial management.

With a strong financial footing and renewed investor confidence, PSBs are poised to play a pivotal role in India’s economic growth trajectory.

Also Read: India Plans Major Expansion in Power Transmission Network by 2032