India’s public sector banks (PSBs) have shown robust financial performance in the fiscal year 2023-24, resulting in substantial dividend payments to the government.
The dividend is the amount of money that a company pays to its shareholders as dividends on a per-share basis.
Dividends for banks represent a distribution of profits to shareholders, including the government for PSBs. Typically, dividends are stated as an amount per share or as a percentage of the face value of shares.
Listed below are four PSU banks that handed over ₹6,481 crores of dividend cheques to Finance Minister Nirmala Sitharaman.
Canara Bank
Canara Bank paid a dividend cheque of ₹1,838.15 crore to the Finance Minister, which was handed over by the bank’s MD and CEO, K. Satyanarayana Raju.
On Friday, Canara Bank shares were closed at ₹112.72 per share, down 1.25 percent on the stock exchange. The bank has a market capitalization of ₹1,02,244 crore.
The Canara Bank board had approved a dividend of 161% for the financial year 2023-24, amounting to ₹3.22 per equity share.
As per the recent shareholding pattern, the Government of India holds a 62.93% stake in the company, while Foreign Institutional Investors hold 11.91%, and Domestic Institutional Investors hold 11.19%.
Indian Bank
On July 10th, 2024, the Indian Bank paid a dividend of ₹1,193.45 crore to the Finance Minister.
On Friday, Indian Bank shares were closed at ₹559.10 per share, up 1.53 percent on the stock exchange. The bank’s market capitalization stands at ₹75,261 crore.
Indian Bank has a dividend yield of 120%. For the financial year 2023-24, the bank’s board approved a dividend of 120%, amounting to ₹12 per equity share.
As per the recent shareholding pattern, the Government of India holds a 73.84% stake in the company, Foreign Institutional Investors hold 5.38%, and Domestic Institutional Investors hold 16.87%.
Bank of India
Bank of India paid a dividend cheque of ₹935.44 crore to the Finance Minister, which was handed over by Bank of India MD and CEO Rajneesh Karnatak.
On Friday, Indian Bank shares were closed at ₹120.75per share, down 1.39 percent on the stock exchange. Indian Bank has a market capitalization of ₹54,764 crore.
The Bank of India has a dividend yield of 2.31%. The bank’s board had approved a dividend of ₹2.8 per equity share for the financial year 2023-24.
As per the recent shareholding pattern, the Government of India holds a 73.38% stake in the company, while Foreign Institutional Investors hold 4.52%, and Domestic Institutional Investors hold a 15.82% stake.
Bank of Baroda
On July 10th, the Bank of Baroda issued a dividend cheque of ₹2,514.22 crore to the Finance Minister, which was handed over by Shri Debadatta Chand, Managing Director & CEO of Bank of Baroda.
On Friday, Bank of Baroda’s shares were closed at ₹250.85 per share, down 2.28 percent on the stock exchange. The bank’s market capitalization stands at ₹1,29,594 crore.
For the financial year 2023-24 (FY23-24), Bank of Baroda paid a dividend of ₹7.60 per equity share to its shareholders, representing a 380% payout on the face value of the shares.
According to the recent shareholding pattern, the Government of India holds a 63.97% stake in the company, while Foreign Institutional Investors own 12.40%, and Domestic Institutional Investors hold 16.04%.
Written by Omkar Chitnis
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