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Bandhan Bank & Axis Bank are likely to see largest dividend growth
June 28, 2023
Bandhan Bank and Axis Bank are projected to record highest increase in dividends among banks for FY24 as their new ventures are expected to pay off. While Bandhan Bank’s new business streams could bolster its earnings for this year and beyond, acquisition of Citi’s India business would drive market share for Axis Bank.
According to S&P Global Market Intelligence, the dividend of Bandhan Bank is expected to increase by 67 percent year on year (y-o-y), whereas Axis Bank is poised to declare 50 percent higher payout than its last year’s dividend of ₹308 crore. Bandhan Bank, on the other hand, had declared dividend worth ₹241.63 crore in FY23, representing ₹1.50 per share.
“Bandhan Bank’s dividend payout is likely to climb by 67% as it adds money from new business streams this year and beyond,” wrote S&P Global Market Intelligence in a note.
The report further said, the dividend of Axis Bank is predicted to rise by 50 percent due to expected synergies from the purchase of Citi Bank India Consumer Business, which is expected to drive its premium market share growth.
However, State Bank of India and HDFC Bank, the highest dividend payers in absolute terms likely to see their dividend rising by 11 percent and 12 percent, respectively. The Nation’s largest lenders had given out more than ₹10,000 crore as dividend in FY23, data sourced from Bloomberg showed.
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