Bank of India Delivers ₹1,553 Crore Dividend to Government Amid FY26 Performance

Bank of India has paid a dividend of ₹1,553.50 crore to the Government of India for the financial year 2025–26 (FY26). The payment comes after the bank reported improved financial performance and follows similar dividend payouts made by other public sector banks.

Dividend Cheque Handed Over to Finance Minister

The dividend cheque, dated 17 June 2026, was presented to Finance Minister Nirmala Sitharaman on 30 June 2026 by Rajneesh Karnatak, Managing Director and Chief Executive Officer of Bank of India. Senior officials from the Department of Financial Services, including Joint Secretary Shalini Pandit, were also present during the meeting.

Dividend Declaration and FY26 Financial Performance

Earlier, Bank of India had announced a dividend of ₹4.65 per equity share for FY26, with a payout ratio of 46.5%.

The bank reported a net profit of ₹10,527 crore for FY26, an increase of 14.19% compared with ₹9,219 crore in FY25. The higher profit enabled the bank to reward its shareholders with a larger dividend.

Public Sector Banks Continue Higher Dividend Payouts

Several public sector banks have recently paid higher dividends to the Government of India, supported by stronger earnings and healthier balance sheets.

Earlier this week, Canara Bank, Bank of Baroda, and Indian Bank together paid ₹7,023 crore in dividends to the government for FY26. Canara Bank contributed ₹2,397 crore after declaring a dividend of ₹4.20 per share, while Bank of Baroda paid ₹2,811 crore with a dividend of ₹8.50 per share. Indian Bank paid a dividend of ₹1,815.05 crore.

These dividend payments contribute to the government's non-tax revenue collections.

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Bank of India Share Price Movement

As of 2 July 2026, 1:5 PM, Bank of India share price (NSE: BANKINDIA) was trading at ₹144.23, up 1.83% or ₹2.59 during the day's trade. The stock opened at ₹141.88 and touched an intraday high of ₹145.45 and a low of ₹140.06. It offers a dividend yield of 3.22%, with the latest quarterly dividend amounting to ₹1.16 per share.

Conclusion

Public sector banks have continued to strengthen their financial position through better profitability, lower bad loans, improved asset quality, and steady credit growth. As a result, many state-owned lenders, including Bank of India, have increased shareholder payouts while maintaining adequate capital levels, reflecting the sector's improved financial health.

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