Due to increase in profits of public sector banks i.e. government banks, they can pay dividend of more than Rs 15,000 crore in the current financial year. All 12 PSBs have earned a total profit of Rs 98,000 crore in the first three quarters of the current financial year.
This amount is only Rs 7,000 crore less than for the financial year 2022-23. The PSB had reported the highest-ever overall net profit of Rs 1.05 lakh crore in FY 2022-23. In the financial year 2021-22, this figure was Rs 66,539.98 crore.
Dividend of Rs 13804 crore was received last year
In the last financial year, the government received a dividend of Rs 13,804 crore, which was 58 percent more than Rs 8,718 crore in the previous financial year. The news agency PTI report quoted sources as saying that since the profit in the current financial year will be much higher than last year, the dividend payment to the government will also be higher. He said that considering the past record, the dividend payout for FY 2023-24 should exceed Rs 15,000 crore.
Banks’ profits increased due to increase in interest rates
Let us tell you, RBI started increasing the repo rate in May 2022. Due to high interest rates, there has been a sharp jump in the profits of banks in the last few years and at present, most of the government banks are registering their best profits till date. Currently the repo rate is 6.50 percent.
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