FM Sitharaman receives dividend cheque of Rs 12,207 crore from LIC
New Delhi, July 29
Finance Minister Nirmala Sitharaman on Wednesday received a dividend cheque of Rs 12,207 crore from the Life Insurance Corporation of India for FY 2025-26.
She received a "dividend cheque of Rs 12,207 crore for FY 2025-26 from R. Doraiswamy, MD and CEO, Life Insurance Corporation of India," according to an X post.
FM Sitharaman also received a dividend cheque of Rs 2,853 crore for FY2025-26 from Asheesh Pandey, MD and CEO, Union Bank of India and a dividend cheque of Rs 211 crore for FY2025-26 from Girija Subramanian, Chairman-cum-Managing Director, the New India Assurance Co. Ltd.
According to an X post by Finance Minister, Public Sector Banks (PSBs) witnessed a significant improvement in asset quality during FY 2025-26, with Gross Non-Performing Assets (GNPA) declining to a record low of 1.9 per cent and combined net profit reaching an all-time high of Rs 1.98 lakh crore.
The net profit of public sector banks recorded a robust 11.1 per cent increase in FY 2025-26, marking the fourth straight year of profitability as reforms and strengthened governance practices have reinforced healthier balance sheets, enhanced operational resilience, and strong capital adequacy.
Improved asset quality, healthy credit expansion and higher income contributed to improved profitability of PSBs during FY 2025-26, an earlier Finance Ministry statement said.
The aggregate business of public sector banks (PSBs) increased to Rs 283.3 lakh crore as on March 31, 2026, registering a growth of 12.8 per cent over the previous year, it said.
Asset quality of PSBs improved significantly during FY 2025-26, with Gross NPA ratio (Non-Performing Assets) declining to 1.93 per cent and Net NPA ratio to 0.39 per cent as on March 31, 2026, reflecting historically low levels of stressed assets.
Further, each PSB maintained a provisioning coverage ratio of above 90 per cent, indicating prudent provisioning practices, improved underwriting standards, effective risk management mechanisms and strengthened balance sheet resilience, the statement added.
— IANS
Reader Comments
Finally some good news! PSB net profit at an all-time high of Rs 1.98 lakh crore and GNPA at a record low of 1.9% is impressive. 👏 The banking sector reforms are paying off. But I wish the government would also focus on reducing the burden on taxpayers. Rs 12,207 crore from LIC is a big help, but we need more transparency on how this money is spent.
As an outsider looking in, this seems like a positive development for India's financial sector. LIC's dividend and the PSB turnaround are strong indicators of economic recovery. However, I wonder how sustainable this growth is given global headwinds. India's focus on governance reforms seems to be working—will be interesting to see if this continues.
Great to see LIC and public sector banks doing so well! Rs 12,207 crore dividend plus PSB profits of Rs 1.98 lakh crore is no small feat. The improvement in asset quality is commendable—GNPA down to 1.93% is a remarkable achievement. But I have to ask: will this translate into better interest rates for borrowers? The common man still faces high loan rates.
Impressive numbers from India! The LIC dividend and PSB performance reflect strong institutional governance. However, I'm curious about the provisioning coverage ratio above 90%—that's very prudent. It would be helpful to see more historical context on how these metrics have evolved over the past decade. Still, this is a good story for India's financial resilience. 👍
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