PSBs, insurers to pay Rs 9,000 cr dividend to govt in FY14
New Delhi: Hard pressed for funds, the government is expected to get over Rs 9,000 crore in dividend from state-owned banks and insurance companies in 2013-14.
These institutions are estimated to have contributed Rs 8,377.64 crore dividend to government in the current fiscal.
As per the official data, State Bank of India (SBI) would pay the highest dividend at Rs 1,750.12 crore, followed by Life Insurance Corporation of India (LIC) at Rs 1,564.48 crore and Punjab National Bank at Rs 506.52 crore.
PSU general insurer National Insurance Company (NIC) will not pay any dividend in the next fiscal. In the current fiscal, the government had estimated Rs 20 crore from NIC as dividend, but the company did not pay any.
The banks will be contributing Rs 7,010.82 crore, while the six insurance companies will give Rs 2,051.28 crore as dividend in next fiscal.
In the current year, banks are estimated to have paid Rs 6,373.5 crore while insurers paid Rs 1,799.14 crore.
Government has been pressing PSUs to pay more dividend and prodding them to invest surplus cash lying with them.
At the beginning of a financial year, public sector undertaking (PSUs) sign a memorandum with the government regarding their plans for the year, including dividend payout.
A company pays dividend on profits to its shareholders. In all these institutions, government is the majority shareholder.