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Public Sector Banks to pay ₹8,000 cr Dividend to Centre

Published on May 25, 2022
Current Context: It is estimated that state-run banks are going to pay 8,000cr dividend to the government.
Public Sector Banks to pay ₹8,000 cr Dividend to Centre
  • These payouts by state-run banks provide minor relief to the government, as they were facing many hurdles after tax cuts on fuel.
  • Recently RBI also transfer a surplus of 30,307cr to the government to tackle the economic challenges.
  • State Bank of India, has the highest payout of Rs 3,600 crores. The second place is occupied by Union Bank with Rs 1,084 crores, followed by Canara Bank at Rs 742 crore.
  • According to Banking Regulation Act, banks should pay dividends only if they have cleared their capitalized expenses, and can carry forward losses that should be waived off.
  • Since 2016, state-owned banks stopped paying dividends due to their weak financial condition and in FY20 RBI imposed restrictions on banks to pay any dividends so that they can save some capital for dealing with pandemics.
  • Later the restriction has partially lifted by RBI and allowed banks to pay 50% of the amount is determined as per the dividend payout ratio.


Q.1 Recently PSBs are decided to transfer how much amount of their dividends to the government?
a. 5000 crore
b. 8000 crore
c. 7000 crore
d. 6000 crore
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