Union Finance Minister Nirmala Sitharaman on Monday accepted a huge dividend payment of ₹8,076.84 crore from the State Bank of India (SBI) as a cash credit for the year 2024–25.
SBI Chairman CS Setty handed over the cheque at a meeting at the Finance Minister's office in the presence of top government officials.
"Smt @nsitharaman presents a dividend cheque of Rs 8076.84 crore for FY 2024-25 to CS Setty, Chairman – @TheOfficialSBI," a post on the official account of the Finance Minister's office on social media platform X read.
This substantial dividend is a reflection of the robust financial performance of India's major public sector undertakings (PSUs) in sectors like banking, energy, and power in the last quarter of FY25—an impulse that is expected to continue to strengthen the government's fiscal stance.
SBI, the country’s largest bank, and insurance behemoth LIC led the way with impressive profits of ₹18,643 crore and ₹19,013 crore respectively for the January–March 2025 period. For the full fiscal year, SBI’s net profit reached ₹70,901 crore, while LIC posted a net gain of ₹48,151 crore.
In the energy sector, Coal India posted a Q4 profit of ₹9,604 crore. Indian Oil Corporation came in second with ₹7,265 crore, and Oil and Natural Gas Corporation (ONGC), a leading upstream oil producer, made ₹6,448 crore in the period.
The power industry also reported robust numbers. NTPC, the leading electricity generator in India, reported a profit of ₹7,897 crore, while Power Finance Corporation (PFC), which comes under the Ministry of Power, reported profits of ₹8,358 crore. Power Grid Corporation of India Ltd reported a Q4 profit of ₹4,143 crore.
Not only do these government-owned enterprises significantly pay dividends to the government, but they also generate significant corporate tax revenue for the government. Further, their huge planned capital expenditure contributes to driving economic progress and employment opportunities at large throughout the country.
Concurrently, the central government was also able to achieve its target of 4.8% of GDP for the fiscal deficit in FY25, as specified in the revised budget estimates, based on recently published data by the Controller General of Accounts (CGA).
The CGA figures showed the Centre collected ₹30.36 lakh crore in revenue from tax and non-tax collections—98.3% of the revised Budget Estimates. Importantly, the component of non-tax income was supported by dividends and profits of public sector undertakings, a reflection of their role in maintaining the fiscal health of the nation.
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