Canara Bank, Bank of Baroda & Indian Bank Pay Combined ₹7,023 Crore Dividend to Government for FY26

Three major public sector banks—Canara Bank, Bank of Baroda (BoB), and Indian Bank—have delivered a substantial financial boost to the central exchequer. The state-run lenders collectively paid a massive dividend of ₹7,023 crore to the Government of India for the financial year 2025–26. As the primary shareholder in these banking institutions, the funds have been transferred directly to the central treasury. Top executives from the respective banks formally presented the dividend dividend cheques to Union Finance Minister Nirmala Sitharaman.

Individual Bank Contributions Breakdown
The multi-crore dividend payout reflects robust financial health and sustained profitability across the public sector banking domain during the review period. The individual contributions from the three banking giants include:

Bank of Baroda: Disbursed the highest individual share of ₹2,811 crore, declaring a dividend of ₹8.50 per equity share.

Canara Bank: Contributed a substantial ₹2,397 crore to the government, having announced a dividend payout of ₹4.20 per equity share.

Indian Bank: Handed over a dividend cheque worth ₹1,815.05 crore to the Finance Ministry.

Driving Factors Behind the High Payouts
Alongside the significant financial payouts, all three public sector undertakings (PSUs) reported highly encouraging operational performances for the fiscal year. Indian Bank, in particular, emphasized that its strong numbers were driven by steady business growth, notable improvements in overall asset quality, and highly efficient operational management. Analysts point out that these massive dividend payouts highlight the successful turnaround and strengthening profitability of India’s public sector banks, turning them into reliable and highly lucrative revenue streams for the central government.