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News Topical, Digital Desk : If you have included the shares of the country's top banks in your portfolio, then this news is for you. Especially for those who expect strong dividends along with growth from these banking shares. In the coming time, these banks may reduce dividends. According to a new report by S&P Global Market Intelligenec, Indian banks may cut dividend payments by 4.2% for the first time in four years in the financial year 2026 (till March 2026). This reduction is expected due to a decrease in loan demand and pressure on profits.

The report said that the total dividend of 12 major Indian banks may fall from $6.24 billion (about Rs 55,181 crore) to $5.98 billion (Rs 52,882 crore) in the financial year 2026.

This amount had increased by 15.3% in the last financial year (2025). According to the research arm of S&P, most of the big banks will cut their dividend per share or maintain it at last year's level. How much rupees per share cut is expected?

  • HDFC Bank: Dividend may decrease from Rs 11 per share to Rs 8.25.
  • Bank of Baroda: Dividend may decrease from Rs 8.35 to Rs 7.90 per share.
  • Canara Bank: Dividend may decrease from Rs 4 to Rs 3.90 per share.
  • Punjab National Bank: Dividend may decrease from Rs 2.90 to Rs 2.60 per share.
  • SBI: Dividend may remain almost stable at Rs 15.90 to Rs 16 per share.
  • ICICI Bank: This may be the only big bank to increase dividend from Rs 11 to Rs 12 per share.


Pressure on banks' profits
According to S&P Global, the reason for the pressure on banks' profits is the 100 basis point cut in the repo rate by the Reserve Bank of India (RBI) in 2025. This has reduced the interest rates on loans. But the cost of funding has increased due to increased competition on deposit amounts.

Apart from this, credit growth has come down from 13.6% to 10% due to weak demand and cautious economic environment. Trade uncertainties have also increased due to the US imposing 50% tariff on Indian goods.

How has been the performance of banks?
Banks had registered strong profits in the last financial year (till March 2025). The loan book of the six largest banks grew by an average of 11.3%.

The country's largest bank, SBI, registered a profit of Rs 70,901 crore with a growth of 16.1%. At the same time, HDFC Bank, the largest bank in the private sector, achieved profit with a growth of 10.7%.


Read More: Infosys share buyback: Will you get Rs 1,800 or just Rs 1,620? The whole game is hidden in taxes!

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