RBI dividend in FY25 likely to remain at same level as FY24

New Delhi: The dividend the Reserve Bank of India (RBI) will transfer to the central government in FY20 is likely to be in the same range or slightly higher than the previous fiscal (FY24), two people aware of the matter said. .

Meanwhile, the dividend that the Center will receive from public sector banks (PSBs) during FY2025 will likely be higher than the dividend received in FY2024 as the profits reported by state-owned banks last year in FY24. Was more than last year. Said mentioned above.

PSB in profit

Profits of government banks exceed Rs 98,000 crore and above likely in first three quarters of FY2024 1.3 trillion by the end of FY24.

“The Center expects dividend income from the RBI during FY20 to be at the same level or slightly higher than last year,” said the first person cited above, requesting anonymity.

“Dividend received from PSBs is expected to end 15,000 crore during FY25,” the person said.

The dividend from the RBI is generally released to the Center in May.

During FY24, the government had estimated 17% higher dividend 48,000 crore from RBI, public sector banks and financial institutions.

target exceeded

However, this target was exceeded with the transfer of Rs 87,416 crore was given by the RBI as surplus to the central government for FY 2023, which was paid in May 2023 and accounted for by the government in FY 2024.

Dividend payment of public sector banks for FY24 is almost done 15,000 crores.

The vote on the account budget presented in February tells what the government's expectations are. Rs 1.02 trillion dividend from RBI and state-owned banks in FY2025, but no breakup given.

Meanwhile, actual dividends from RBI and state-owned banks are likely to exceed budgetary targets during FY2015 and will help the Center remain on its fiscal deficit path and keep fiscal deficit at 5.1% or 5.1% in FY2015. Will bring even better, said the other. The person mentioned above.

the above provisions

“There is a possibility that dividend income will exceed the provisions made in the Vote on Account budget, like last year when actual dividend income exceeded the budget target,” the person said.

Finance ministry and RBI spokespersons did not respond to emailed queries.

“The RBI dividend is considered based on the recommendations of the previous committee report which primarily follows a provisioning methodology for certain risk contingencies apart from which the surplus income is distributed as dividend. As we know RBI's earnings have declined over the past few years. Commercial banks holding securities (both foreign and domestic) and funding the Indian economy's appetite for expansion and growth have declined, said Anish Mashruwala, partner at JSA Advocates & Solicitors. The increase was seen due to interest income from loans given to the

“In fact due to the recent strengthening of the USD, foreign exchange sales by the RBI have declined significantly over the last year and this has reduced the potential earnings on this front. However, given the current geopolitical realities, I I am very bullish on India's continued upward trend and while the upcoming election results will certainly impact the speed of this trajectory, I am of the view that RBI's dividend payout for FY2025 will remain strong and India's earnings will remain high. With foreign capital inflows, it should be higher,” Mashruwala said.

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