Central Bank of India Dividend Announcement
The Central Bank of India has announced that it will be distributing a final dividend for the financial year ended March 31, 2025. In an exchange filing dated April 28, the bank stated that the board has fixed July 4, 2025, as the record date for determining entitlement of members for payment of the final dividend.
Record Date and Payment Details
The final dividend will be paid to eligible shareholders, subject to approval of shareholders at the 18th Annual General Meeting (AGM) of the bank scheduled on July 19, 2025. The dividend will be distributed to the eligible shareholders within 30 days from the date of the 18th Annual General Meeting. The bank has recommended a final dividend of 1.875% (i.e., Re 0.1875 per equity share of Rs 10 each) for FY 2024-25.
History of Dividend Payments
This is the first dividend announcement by Central Bank of India after 2015. In 2015, the bank had distributed a dividend of Rs 0.50 on each stock of Rs 10 face value. The bank’s decision to distribute a dividend after a long period is a positive sign for its shareholders.
Financial Performance
In the fourth quarter (Q4 FY2025), Central Bank of India reported a 41% jump in its net profit to Rs 807 crore. The lender had earned a net profit of Rs 571 crore in Q4 a year ago. The bank’s total income in the March 2025 quarter stood at Rs 9,699 crore. The bank’s shares closed 1.08% higher at Rs 39.20 on June 27, 2025.
Share Price Performance
Central Bank of India shares have corrected 36% in the last one year but have moved 37% northward in two years. In three years, the bank stock has yielded a multibagger return of 127%. The bank is a constituent of the BSE 200 index and has a market valuation of Rs 35,481 crore.
Conclusion
The Central Bank of India’s decision to distribute a dividend is a welcome move for its shareholders. The bank’s financial performance has been improving, and the dividend payment is a sign of its commitment to rewarding its shareholders. However, investors should consult their financial advisors before making any investment decisions. The bank’s shares have been volatile in the past, and investors should carefully evaluate their investment options before making any decisions.
