Canara Bank, Bank of Baroda, Indian Bank Paid a Dividend of ₹7,023 Crore to Government for FY26

The Government of India has received a combined dividend of ₹7,023 crore from three public sector banks - Canara Bank, Bank of Baroda and Indian Bank, for the financial year 2025-26, as per PTI reports.  

The dividend cheques were presented to Finance Minister Nirmala Sitharaman on Monday. As the majority shareholder in these lenders, the government receives a share of profits through dividend payouts approved by their respective boards. 

Bank of Baroda Makes the Highest Contribution 

Bank of Baroda accounted for the largest share of the total payout, transferring ₹2,811 crore to the government. Managing Director and Chief Executive Officer Debadatta Chand handed over the dividend cheque to the Finance Minister. 

For FY26, the bank declared a dividend of ₹8.50 per equity share. This works out to 425% of the face value of ₹2 per share. The dividend follows the bank's financial results and approval by its board. 

Canara Bank Pays ₹2,397 Crore 

Canara Bank paid a dividend of ₹2,397 crore to the government. The cheque was presented by the bank's newly appointed Managing Director and Chief Executive Officer, Brajesh Kumar Singh, in the presence of Financial Services Secretary Sanjay Lohiya. 

The bank declared a dividend of ₹4.20 per equity share for FY26, equal to 210% of the face value of ₹2. In a regulatory statement, the lender said the dividend was declared after its financial performance for the year and distributed to shareholders, including the Government of India. 

Indian Bank Transfers ₹1,815 Crore 

Indian Bank contributed ₹1,815.05 crore as dividend for FY26. Managing Director and Chief Executive Officer Binod Kumar presented the cheque to the Finance Minister. 

The Chennai-based lender said it continued to report growth across its core business segments during the year while maintaining asset quality and improving operational efficiency.  

The bank also said it remains focused on financial inclusion and expanding banking services in line with government initiatives. 

Read More: NSE Signs MoU with Bharat Metal Exchange (BME) to Promote Non-Ferrous Metal Derivatives in India! 

Conclusion 

The three public sector lenders have completed their FY26 dividend payouts to the Government of India. Bank of Baroda contributed the highest amount, followed by Canara Bank and Indian Bank. 

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