New Delhi, July 29: India’s largest insurance company, LIC, presented a dividend check of ₹12,207 crore to Finance Minister Nirmala Sitharaman on Wednesday for the fiscal year 2025-26.
The check was handed over by R. Doraiswamy, the Managing Director and CEO of Life Insurance Corporation of India (LIC).
In addition, Finance Minister Sitharaman received a dividend check of ₹2,853 crore from Ashish Pandey, the MD and CEO of Union Bank of India. She also obtained a check for ₹211 crore from Girija Subramanian, the Chairperson and Managing Director of New India Assurance Company Limited.
According to the Finance Minister’s statement, there has been a significant improvement in the asset quality of public sector banks (PSBs) during the fiscal year 2025-26. The gross Non-Performing Assets (NPA) have dropped to a record low of 1.9%, while net profit has surged to an all-time high of ₹1.98 lakh crore.
The net profit of PSBs increased by 11.1% in the fiscal year 2025-26. This marks the fourth consecutive year of profitability for PSBs. Improvements in governance and strong administrative frameworks have led to more robust balance sheets, enhanced operational efficiency, and improved capital adequacy.
Earlier, the Finance Ministry stated that better asset quality, strong loan growth, and rising income contributed to the profitability of public sector banks during the fiscal year 2025-26.
The statement noted that by March 31, 2026, the total business of public sector banks had risen to ₹283.3 lakh crore, reflecting a 12.8% increase compared to the previous year.
During the fiscal year 2025-26, significant improvements in asset quality were recorded. By March 31, 2026, the gross NPA ratio fell to 1.93%, and the net NPA ratio decreased to 0.39%, indicating historically low levels of stressed assets.
Moreover, each public sector bank maintained a provisioning coverage ratio of over 90%. This provisioning reflects effective underwriting, risk management systems, and strong balance sheets.
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