Which of the following banks paid a record ₹8,076.84 crore dividend to the Government of India for FY25 in June 2025?

Correct option is B

The correct answer is (b) State Bank of India

Explanation:

• The State Bank of India (SBI) paid a record dividend of ₹8,076.84 crore to the Government of India for the financial year 2024–25.
• The dividend cheque was presented by SBI Chairman to the Union Finance Minister, Nirmala Sitharaman, in June 2025.
• This massive payout follows SBI's historic net profits recorded during the fiscal year, driven by strong credit growth and improved asset quality.
• As the largest shareholder, the Government of India receives a significant portion of the profits distributed by Public Sector Banks (PSBs).
• This contribution helps the government meet its non-tax revenue targets for the union budget.

• SBI is a Fortune 500 company and the largest public sector bank in India, with its headquarters in Mumbai.
• Dividends from PSBs and the RBI are crucial for the government to manage its fiscal deficit.

• While it paid a healthy dividend, it did not reach the ₹8,000 crore mark, which is typically reserved for the largest lender (SBI).

• BoB is the second or third-largest PSB, but its dividend payout for FY25 was significantly lower than SBI's record figure.

• Indian Bank has shown great performance, but as a smaller entity compared to SBI, its dividend total is naturally smaller.