Why PSU banks are giving so high dividend in June 2025?

Canara Bank is giving 3.5% dividend, Bank of Rwanda 3.3%, Bank of India 3.2%, and there are other PSU stocks which are giving more than 2% in June 2025. So what's the reason why PSU banks are giving so high dividend? And what has changed in PSU banks that they are giving so high dividend? So this massive surge in dividend by PSU bank is backed by remarkable improvement in the financial stability of the bank. And the net profit of PSU banks is also quite high. In financial year 23, it was Rs 1,05,000 crores and in financial year 24, it became Rs 1,41,000 crores. So an increase of more than 30% in net profit. And the asset quality has also strengthened a lot and the NPAs are at multi-year low. So this is the reason why PSU banks are giving so high dividend. Financial stability has improved, net profit has increased, asset quality has strengthened and NPAs are at multi-year low. And one more reason behind so high dividend is because government continues to focus on maximising shareholder return. Because government is the biggest shareholder in the PSU banks. And whatever dividend PSU banks are giving, 60-65% of it is going to the government.