New Delhi, May 22 -- New Delhi: The government expects to garner Rs.20,000-25,000 crore in fiscal year 2025 (FY25) dividends from public sector banks, which have scored record profits and notched up sustained growth, two people familiar with the matter said, requesting anonymity.

The projected inflow will strengthen non-tax revenue and support the government's fiscal consolidation efforts.

The Centre received about Rs.18,000 crore in dividends from state-owned lenders in FY24 and Rs.13,804 crore in FY23.

This optimistic outlook follows a record Rs.1.78 trillion in combined net profit posted by all 12 public sector banks in FY25, marking a 26% increase over the previous year's Rs.1.41 trillion.

The payouts will be accounted for in FY26...