SBI Pays Rs 8,813 Crore Dividend To Government After 13% Profit Growth In FY26

State Bank of India (SBI), the country’s largest public sector lender, has handed over a dividend cheque of ₹8,813 crore to the Government of India following its strong financial performance in the fiscal year 2025–26. The cheque was presented by SBI Chairman C S Setty to Finance Minister Nirmala Sitharaman in New Delhi, marking a 9% increase compared to the previous year’s dividend payout.

The latest dividend transfer reflects SBI’s improved earnings trajectory during FY26, during which the bank reported a record standalone net profit of over ₹80,000 crore. According to official figures, the lender’s net profit rose by approximately 13% year-on-year to ₹80,032 crore, up from ₹70,901 crore in the previous financial year. The bank also declared a dividend of ₹17.35 per equity share, with eligibility determined based on a record date of May 16 and payment completed on June 4.

The government’s receipt of the dividend underscores the significant contribution of public sector banks to fiscal revenues. SBI’s consistent profitability has made it a key source of non-tax revenue for the Centre, particularly in years where disinvestment and dividend inflows play an important role in budgetary support. The latest payout comes as part of the bank’s broader financial performance, which has remained strong despite volatility in quarterly earnings.

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However, SBI’s March quarter results for FY26 reflected some pressure on short-term performance, even as annual profits remained robust. The bank reported a 5.6% year-on-year rise in standalone net profit for the quarter to ₹19,684 crore, though this marked a decline from the previous quarter. Operating profit also fell to ₹27,704 crore from ₹31,286 crore in the corresponding period last year, leading to a decline in investor sentiment and a sharp fall in the stock price following the results announcement.

A significant factor behind the quarterly dip was a reduction in other income, which dropped to ₹17,314 crore from ₹24,367 crore in the same period last year. The previous year’s figures had included an exceptional gain from the divestment of SBI’s stake in Yes Bank, which boosted earnings. Despite this, the bank’s underlying financial health remained stable, supported by continued improvement in asset quality.

SBI reported a decline in gross non-performing assets to 1.49% from 1.82% a year earlier, while net NPAs remained steady at 0.39%. The bank’s capital adequacy ratio under Basel III norms strengthened to 15.40%, indicating a solid capital buffer. Overall, the latest dividend payout highlights SBI’s strong annual performance, even as quarterly fluctuations continue to reflect market and accounting variations.

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