Leading banks to trim dividend payout this fiscal, fearing lower profit and loan growth, says S&P Global

Top 12 Indian banks – including HDFC Bank, Bank of Baroda, Canara Bank, and Punjab National Bank - are expected to cumulatively reduce their dividend payment by 4.2 percent to $5.98 billion in the current financial year, as profitability seems to be coming under pressure amid slowing loan growth, a report by S&P Global Market Intelligence has said.

This comes after the banks distributed dividend worth $6.24 billion in FY25, an increase of 15.3 percent over previous fiscal.

HDFC Bank's dividend per share is projected to fall to Rs 8.25 in the fiscal year ending March 31, 2026, from Rs 11 in the previous year, according to S&P Global Market Intelligence’s estimates. Bank of Baroda may cut its dividend to Rs 7.90 per share from Rs 8.35, and Canara Bank may cut it to Rs 3.90 per share from Rs 4, while Punjab National Bank may reduce it to Rs 2.60 per share from Rs 2.90.

State Bank of India may keep its dividend per share nearly unchanged at Rs 16 compared with Rs 15.90 last fiscal, while ICICI Bank may raise it to Rs 12 in fiscal year ending March 31, 2026, from Rs 11, the report said.