New Delhi: Public sector banks (PSBs) are anticipated to pay a dividend exceeding Rs 15,000 crore for the monetary yr ending March 2024, fueled by enhanced profitability, as per sources. In the course of the preliminary three quarters of the current fiscal yr, the mixed revenue of all 12 PSBs amounted to Rs 98,000 crore which is merely Rs 7,000 crore lower than their complete revenue for the whole fiscal yr of FY23.
Throughout FY23, PSBs achieved their highest-ever mixed internet revenue of Rs 1.05 lakh crore, surpassing the Rs 66,539.98 crore earned within the fiscal yr 2021-22. Consequently, the federal government acquired a dividend of Rs 13,804 crore, marking a 58 per cent enhance from the Rs 8,718 crore paid out within the earlier fiscal yr. (Additionally Learn: RBI Initiates Particular Audits For IIFL Finance, JM Monetary Over Regulatory Breaches)
The revenue within the present monetary yr is anticipated to exceed that of the earlier yr. Therefore, the dividend payout to the federal government can even be greater, as per the sources. Going by the previous document, the dividend payout for FY24 must be in extra of Rs 15,000 crore, they added. (Additionally Learn: Over 447 Million {Dollars} In Funding Raised By 22 Indian Startups Final Week)
Earlier in January, the Reserve Financial institution, in its draft pointers, proposed to permit banks having internet non-performing belongings (NPAs) ratio of lower than 6 per cent to declare dividends. As per the prevailing norms final up to date in 2005, banks must have an NNPA ratio of as much as 7 per cent to grow to be eligible for declaration of dividends.
The central financial institution has proposed that the brand new pointers ought to come into impact from FY25 onwards. The draft lays down instructions that have to be adopted by banks’ boards whereas contemplating proposals of dividend payouts, which embody consideration on divergence in classification and provisioning for NPAs as properly.
A business financial institution ought to have a minimal complete capital adequacy of 11.5 per cent to be eligible for declaring dividends, the round stated. (With Inputs From PTI)
