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

Current Context: The Government of India announced on March 26, 2025, that Public Sector Banks (PSBs) increased their dividend payouts by 33% in FY24, totaling ₹27,830 crore compared to ₹20,964 crore in FY23.

This growth is reflective of PSBs' improved financial health, driven by record-breaking profits of ₹1.41 lakh crore, up from ₹1.05 lakh crore in FY23.
The dividends largely benefit the government, which holds significant stakes in PSBs, receiving ₹18,013 crore (65% of the total).
The State Bank of India (SBI) contributed significantly, with a net profit of ₹61,077 crore, over 40% of the total profits.
This success stems from enhanced asset quality, robust credit growth, and higher profitability across PSBs.

Question:

Q.1 By what percentage did Public Sector Banks (PSBs) increase their dividend payouts in FY24 compared to FY23?
a) 20%
b) 25%
c) 40%
d) 33%

Answer: d) The Government of India announced that PSBs increased their dividend payouts by 33%, rising from ₹20,964 crore in FY23 to ₹27,830 crore in FY24.