According to a survey from S&P Global Market Intelligence, the combined dividend payout to shareholders by Indian banks is anticipated to reach its highest level in at least seven years in 2023–2024 thanks to good business indicators and solid loan growth.
According to Tusharika Aggarwal, a dividend forecasting research analyst at S&P Global Market Intelligence, "India's robust economic activity will probably "sustain high credit growth," resulting in "good" earnings estimates for banks.
In the coming years, Aggarwal predicted that Axis Bank, Bandhan Bank, and AU Small Finance Bank will dominate dividend payout hikes.
On the strength of accelerated credit growth and declining bad loans, lenders reported good growth in net profits both in the last fiscal year and the first quarter of the current financial year.
According to the analysis, banks will likely account for 13% of the total dividend payout across all sectors in the fiscal year that ends on March 31 compared to 12% and 9% in the prior two fiscal years.
When the Reserve Bank of India urged lenders to conserve capital and halt dividend payments owing to COVID-19, this share was below 1% in 2020–2021.
