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Dividend Payouts from PSUs Decline in FY25

Geetanjali Lachke Posted on June 04, 2025

In FY25, government dividend receipts from listed public sector undertakings (PSUs) recorded a decrease. Despite certain sector-specific factors, public sector banks' dividend payouts exhibited an increase.

Key Highlights

Total FY25 dividend to government: ₹82,995 Crores from listed PSUs
Change from FY24: Down 0.9% from ₹83,749 Crores
Total PSUs declaring dividends: 52 (up from 50 last year)
Overall PSU dividend payout: ₹1.33 Lakh Crores vs. ₹1.38 Lakh Crores in FY24
Net profit of listed PSUs: ₹4.32 Lakh Crores (up from ₹4.2 Lakh Crores)
Dividend payout ratio: 30.7% (down from 32.8% in FY24)

Reasons for Government's Dividend Income Dip

The reduction in dividend income is attributed to decreased payouts from approximately 15 PSUs, which include:

Indian Oil Corporation (IOC): Dividend down 75% to ₹2,182 Crores
BPCL: Payout fell 53% to ₹2,264 Crores
Punjab & Sind Bank: 65% drop to ₹47 Crores
Power Grid Corporation & SAIL: Around 20% reduction
SJVN & RVNL: Over 18% decrease

Some of the Leading Performers in PSU Dividend Space

Despite the general decrease, some PSUs recorded increased or maintained dividend payouts. The table below presents dividend contributions from selected PSUs in FY25:

Company	FY24 Dividend (in Crores)	FY25 Dividend (in Crores)	Change
Coal India	₹9,920.9	₹10,309.9	Increased
ONGC	₹9,075.4	₹9,075.4	Unchanged
SBI	₹7,035.2	₹8,149.4	Increased
LIC	₹6,103.6	₹7,324.4	Increased
NTPC	₹3,840.1	₹4,137.4	Increased

Disclaimer: The securities quoted are for illustration only and are not recommendatory. Dividend payouts and PSU financial performance are subject to market and operational risks.

Public Sector Banks- Dividend Performance

Public sector banks (PSBs) recorded an increase in payouts:

Total PSB dividend in FY25: ₹34,995 Crores (up 25.7% from ₹27,853 Crores in previous year)
Government’s share: ₹22,775 Crores (up from ₹18,092 Crores received in previous year)

RBI’s Dividend Adds to the Fiscal Buffer

Further to these dividend inflows, the Reserve Bank of India announced a dividend of ₹2.7 Lakh Crores in May 2025. This dividend may be a factor in government revenues and capital spending capacity, which includes:

Impacting government revenues
Potentially influencing capital spending levels
Potentially contributing to management of fiscal deficit targets

Disclaimer

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

Sources

https://www.moneycontrol.com/news/business/earnings/govt-dividend-from-listed-psus-slips-marginally-to-rs-82-995-crore-in-fy25-13083998.html

Hi! I’m Geetanjali Lachke

Blogger

Geetanjali is an emerging content writer with a passion for writing and marketing. She focuses on crafting clear, engaging blog posts and articles that simplify complex topics, particularly in finance and business. Geetanjali is dedicated to delivering insightful content that helps readers understand and navigate critical concepts, empowering them to make informed decisions and stay ahead in the ever-evolving landscape of finance and business.