The entire dividend of 12 giant banks is projected to say no by about 4.2% to $5.98 billion within the present fiscal yr ending March 31, 2026 from $6.24 billion a yr in the past which was a 15.3% enhance over the earlier fiscal yr.
The analysis arm of world credit standing company Normal & Poor’s, all main Indian banks are both anticipated to chop their dividend per share or hold it the identical stage because the final fiscal yr. HDFC Financial institution is anticipated to chop dividend to Rs 8.25 per share within the present fiscal yr from Rs 11 per share within the earlier yr, whereas Financial institution of Baroda could lower its dividend to Rs 7.9 per share, from Rs 8.35 per share the analysis company estimates.
State Financial institution of India (SBI) could hold its dividend per share practically unchanged at Rs 16 per share, virtually at related ranges in contrast with Rs 15.90 per share paid final fiscal, whereas ICICI Financial institution may very well be the one giant financial institution to boost its per share dividend to Rs 12 per share within the fiscal yr ending March 2026, from Rs 11 per share a yr in the past.
Reserve Financial institution of India’s 100 foundation level repo charge lower to this point in 2025, has compressed financial institution margins as loans charges have come off at the same time as elevated competitors for deposit funds is pushing funding prices greater. Weaker credit score progress attributable to subdued demand and a cautious financial backdrop are more likely to cut back earnings momentum, in keeping with S&P World.
Banking credit score progress has moderated to 10% yr on yr from 13.6% a yr in the past primarily attributable to weak demand, at the same time as lending charges have come down. Commerce uncertainties because of the US imposed 50% tariff on Indian items, the very best amongst main international economies has additionally dampened expectations.
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