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Finance Minister Nirmala Sitharaman on Tuesday received dividend payouts totaling Rs 5,304 crore from three major public sector banks for the financial year ending March 31, 2025. The dividend handovers took place at her North Block office. Punjab National Bank (PNB) led the contributions with a cheque worth Rs 2,335 crore, handed over by its MD and CEO Ashok Chandra. Bank of India (BOI) followed with Rs 1,353 crore, presented by its MD & CEO Rajneesh Karnatak, while Indian Bank MD & CEO Binod Kumar delivered Rs 1,616 crore to complete the trio.

These payouts come shortly after similar contributions by other state-owned banks. Last month, State Bank of India (SBI) remitted Rs 8,076.84 crore and Bank of Baroda provided Rs 2,762 crore in dividends to the central government.

Robust Profits From PSUs

The government’s fiscal position is being reinforced by solid earnings across its public sector undertakings (PSUs), particularly in the financial, energy, and power segments.

Leading the pack, SBI posted a quarterly net profit of Rs 18,643 crore, pushing its full-year profit to an all-time high of Rs 70,901 crore. Life Insurance Corporation of India (LIC) recorded an annual profit of Rs 48,151 crore, with Rs 9,013 crore earned during the January–March quarter.

In the energy sector, Coal India reported a net profit of Rs 9,604 crore for Q4, while Indian Oil Corporation posted Rs 7,265 crore. Oil and Natural Gas Corporation (ONGC), a key upstream entity, secured a profit of Rs 6,448 crore during the same period.

The power sector also witnessed encouraging results. NTPC, India’s largest power generator, posted a quarterly net profit of Rs 7,897 crore. Power Finance Corporation (PFC) earned Rs 8,358 crore, and Power Grid Corporation of India registered Rs 4,143 crore.

Stronger Non-Tax Revenue

The significant dividends and tax contributions from PSUs are enhancing the Centre’s non-tax revenues, crucial for maintaining fiscal discipline. According to data released by the Controller General of Accounts (CGA), the government has achieved its fiscal deficit target of 4.8 per cent of GDP for FY 2024-25.

Total central revenue stood at Rs 30.36 lakh crore, or 98.3 per cent of the revised estimates, with public sector earnings playing a key role in these figures.