Blurb: Finance Minister receives Rs 12,207 crore LIC dividend for FY 2025-26
NEW DELHI
Finance Minister Nirmala Sitharaman received a massive dividend cheque of 12,207 crore rupees from the Life Insurance Corporation of India for the financial year.
The top boss of the insurance giant handed over the huge amount during a formal meeting. This payout highlights the solid financial health and steady growth of the country’s top insurance provider.
Apart from this, the minister also accepted dividend payouts from other state-run financial institutions. She received 2,853 crore rupees from Union Bank of India and 211 crore rupees from New India Assurance. These contributions show the strong performance of public sector financial companies over the past year.
Official updates shared online reveal that public sector banks have shown remarkable improvement in their asset quality. Gross bad loans dropped to a record low of less than two percent. Meanwhile, the combined net profit of these state lenders crossed an impressive milestone, reaching 1.98 lakh crore rupees. This marks four straight years of steady profit growth for these institutions.
Better lending practices, higher income, and smart risk management helped banks improve their balance sheets. The total business volume of these state-run banks expanded by nearly thirteen percent, crossing 283 lakh crore rupees. Experts note that these positive figures reflect a much healthier and safer banking system in the country. Prudent financial rules and strong governance have successfully protected public money while driving impressive economic growth across all sectors.
BOX
Record profits, low bad loans
- Massive LIC Payout: The Life Insurance Corporation handed over a cheque of 12,207 crore rupees, showcasing its solid business performance.
- Banking Sector Profits: Union Bank of India contributed a healthy dividend cheque of 2,853 crore rupees, while New India Assurance added 211 crore rupees.
- Record Low Bad Loans: Public sector banks saw their bad loans drop to a historic low of just 1.9 percent, proving that lenders are managing risks much better now.
- All-Time High Net Profits: Combined net profits for state-owned banks touched an amazing 1.98 lakh crore rupees, marking four straight years of steady growth.
- Massive Business Growth: Total business across these major public banks grew by 12.8 percent, reaching a staggering 283.3 lakh crore rupees by the end of March.