New Delhi, March 23 -- Public sector banks (PSBs) in India have shown significant financial improvement, as their dividend payouts increased by 33 per cent to Rs 27,830 crore in the financial year 2023-24. This is a sharp rise from Rs 20,964 crore in the previous fiscal, according to government data.

Out of the total dividend paid, nearly 65 per cent, or Rs 18,013 crore, went to the government, reflecting its major stake in these banks. In the previous financial year, the government had received Rs 13,804 crore as dividends from the PSBs, including the State Bank of India (SBI).

The rise in dividend payouts comes on the back of record profits reported by public sector banks, the data said. In FY24, 12 PSBs collectively earned their high...