DIVIDEND RECEIPTS
RBI's bumper payout to limit big ticket divestment; govt to maintain Rs 50k cr target: Report
A record Rs 2.1 lakh crore dividend payout by the RBI is expected to reduce the urgency for major divestments, according to Care Ratings, maintaining the government's Rs 50,000 crore target from divestments. Asset monetisation may be preferred if there is a resource shortfall, with SCI sales aiding in achieving the FY25 target. Potential divestments in SCI, CONCOR, and Pawan Hans are on the horizon, with projected total divestment proceeds reaching Rs 12,500-22,500 crore.
Fiscal deficit in April-May at 3% of annual target
The official data revealed the fiscal deficit reduced significantly between April and May, indicating financial improvement. Analysts foresee a faster fiscal consolidation than expected, with potential to enhance expenditure. Aditi Nayar from ICRA highlighted the positive revenue trend, showcasing opportunities for economic growth and sustainability.
Budget Preview: Govt could use part of RBI dividend to reduce fiscal deficit, says Motilal Oswal
A transfer of Rs 2.11 lakh crore by the RBI implies excess receipts of about Rs 1.5 lakh crore in FY25, the MOFSL note said. MOFSL sees the new government largely retaining its tax and non-debt capital receipt (including disinvestment) projections as presented during the interim Budget in February.
New govt may cut FY25 fiscal deficit target amid robust growth and windfall RBI dividend
In the interim budget in February, the government had set the FY25 fiscal deficit goal at 5.1% of GDP and revised the FY24 target to 5.8%. However, the actual fiscal gap for FY24 was contained at 5.6%. With exit polls projecting Prime Minister Narendra Modi to retain power with a strong majority, policy continuity is expected, and the government may aim to further improve the fiscal deficit target for the upcoming fiscal year starting April 1, 2025.
At 5.6% of GDP, FY24 fiscal gap beats target
In absolute terms, the FY24 fiscal deficit stood at ?16.54 lakh crore, down from the revised estimate of ?17.35 lakh crore and FY23 level of ?17.38 lakh crore, showed the official data released on Friday. A lower-than-anticipated deficit in FY24 and a generous surplus transfer by RBI earlier this month make the government's goal of reining in fiscal gap at 5.1% of GDP in FY25 seem more realistic now, experts said.
India's fiscal deficit improves to 5.6% of GDP in FY24, lower than target of 5.8%
India's FY24 fiscal deficit hit Rs 16.54 lakh crore, 95.3% of target. Central government's FY24 fiscal deficit stood at at 5.6% GDP, below 5.8% estimate. Tax receipts surpassed at Rs 23.27 trillion, 100.1% target. Expenditure at Rs 44.43 trillion, 99% target. Capital expenditure at Rs 9.49 lakh crore. Fiscal discipline aims for 5.1% deficit in FY25.
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Fiscal deficit may fall below revised estimate of 5.8%
The Indian government's fiscal deficit could be slightly lower than revised estimates of 5.8% of GDP due to robust revenues and lower subsidy outgo. Tax revenues could exceed the revised estimate by ₹27,000 crore. The fiscal deficit in absolute terms is pegged at ₹ 17.3 lakh crore. Direct tax receipts are expected to exceed revised estimates by about Rs 14,000 crore, while indirect revenues, including customs and excise duty, by Rs 13,000 crore.
RBI's record dividend presents a delicious dilemma for new Indian government
As India prepares for a new government by June 4, a significant Rs 2.11 lakh crore windfall awaits allocation. Options range from faster deficit reduction to increased spending. Analysts anticipate positive investor sentiment, though preferences vary between deficit reduction and expenditure. The BJP-led government's cautious approach contrasts with opposition promises
RBI dividend will have economic dividends
RBI came into this windfall because of high interest rates in advanced economies, which may persist before an eventual cyclical inversion. The strength of India's recovery from the pandemic also contributed to the RBI surplus, and monetary policy would be inclined to pursue this course by easing interest rates ahead of the pack. Inflation is offering comfort on the demand side for an interest rate downcycle. Food inflation, less amenable to demand management, remains a concern.
India to get rating support if it uses RBI dividend to reduce fiscal deficit: S&P analyst
S&P Global Rating suggests India could improve its rating if it channels the record Rs 2.1 lakh crore dividend from the RBI to reduce fiscal deficit. The dividend, around 0.35% of GDP, could aid fiscal consolidation, potentially supporting a faster path to reducing the deficit and boosting India's creditworthiness.
Rs 2.1 lakh crore: RBI’s record dividend swells govt coffers
The benchmark bond yield retreated below 7% on expectations that New Delhi would now need to borrow less this fiscal year. “The higher dividend is welcome, of course,” finance secretary TV Somanathan told ET. “It exceeds our estimate by 0.2-0.3% of GDP.” In the interim budget, North Block had factored in receipts of Rs 1.05 lakh crore under dividends and profits.
Bank curbs hit ONGC's plans to gain 20% stake in Russia oilfield
ONGC, hindered by banking restrictions, faces challenges in paying its share to the abandonment fund for Russia's Sakhalin-1 field, obstructing its efforts to regain a 20% stake in the oilfield. Banking constraints prevent the repatriation of dividends from another Russian field, Vankor, leaving funds inaccessible outside Russia. ONGC Videsh, ONGC's subsidiary, aims to transfer the abandonment fund, necessary for project closure and environmental safety, but discussions with Russian authorities seek alternatives amid banking limitations.
India may raise FY25 CPSE dividend target in full budget
The finance ministry is set to increase CPSE dividend estimates by Rs 5,000 crore to approximately Rs 53,000 crore for the current fiscal year in the full budget to be presented in July. This adjustment reflects improved dividend forecasts based on updated financial data. Dividend receipts for 2023-24 totaled Rs 63,000 crore.
Info Edge Q4 Results: PAT rises 18% YoY to Rs 211 crore, revenue up 8%
Info Edge's Q4 profit rose 18% to Rs 211 crore with revenue at Rs 608.3 crore. Operating profit margins at 37%. Final dividend of Rs 12 per share announced. Cash balance at Rs 4,191 crore. CFO highlighted 13.2% growth in cash from operations
Esop non-disclosure triggers black money law
A number of resident individuals working in Indian subsidiaries and arms of offshore parents have recently received notices from the Income Tax (I-T) department which has pointed out amounts that either went undisclosed or untaxed or both.
L&T Q4 Results: Profit jumps 10% YoY to Rs 4,396 crore; dividend declared at Rs 28/share
L&T Q4 Results: The Board has also recommended a final dividend of Rs 28 per share of the face value Rs 2 each for the financial year ended March 2024. L&T received orders worth Rs 3.02 lakh crore at the group level during the year ended March 2024, registering a 31% YoY growth.
Dividend from non-financial CPSEs at ₹63,749 crore
In the fiscal year 2023-24, the government's dividend collections from non-financial central public sector enterprises and entities with minority stakes reached a record high of ₹63,749 crore, showing a 27.5% increase over the revised estimate. However, disinvestment proceeds fell slightly short of expectations, totaling ₹16,507 crore, mainly due to the IDBI Bank sell-off process spilling over into the current fiscal year. The government achieved divestment through the dilution of minor stakes in 10 entities, primarily via the offer for sale route.
Centre gets a dividend boost as receipts from state-run undertakings surpass revised estimates by 26% to Rs 63,000 cr
In March, the government received hefty dividend tranches from ONGC (Rs 2,964 crore), Coal India (Rs 2,043 crore), Power Grid Corporation of India (Rs 2,149 crore), NMDC (Rs 1,024 crore), HAL (Rs 1,054 crore) and GAIL (Rs 1,863 crore).
REC board okays third interim dividend of Rs 4.5 per share
State-owned REC's board on Tuesday approved a third interim dividend of Rs 4.5 per share with face value of Rs 10 each for 2023-24. Earlier, the company has already announced two interim dividends, totalling Rs 6.5 per share for the current fiscal.
Government's dividend collection from CPSEs hits record Rs 61,149 crore
Dividend receipts in the first half of March alone totalled nearly ₹10,000 crore. The revised estimate in the interim budget last month estimated the dividend collection for 2023-24 at ₹50,000 crore, higher than initial target of ₹43,000 crore.
CPSE dividends cross FY24 revised estimate in 11 months
The interim budget last month estimated such dividend receipts at ₹50,000 crore for the current fiscal, higher than the initial target of ₹43,000 crore.
Budget 2024: Government may set higher dividend target at Rs 70,000 crore from RBI, banks and FIs
The current financial year estimate has already exceeded the Budget target as RBI paid a dividend of Rs 87,416 crore. With public sector banks and financial institutions posting good quarterly numbers during the current financial year, the dividend payout by them in the coming year would be higher compared to this year. So, it would be feasible to expect about Rs 70,000 crore as dividend payout from RBI and financial institutions in FY'25, sources said.
Your shares will be shifted to this government fund if you don't do this for 7 consecutive years
If an individual has not claimed dividend given on shares held by him or her for seven consecutive years, then the company has to transfer those shares and the dividend money to Investor Education and Protection Fund (IEPF), which is managed by Ministry of Corporate Affairs (MCA). However, an individual can claim back those shares by following an online process.
Aster DM wins over Street with a big payout plan
“Following deliberations regarding future expansion plans, capex requirements, and cash reserves, the board is desirous to consider the distribution of 70%-80% of the upfront consideration of $ 903 million, as dividend to its shareholders, i.e. in the range of 110 to 120 per share,” the company announced on Monday.
Centre may rake in ₹55,000 crore in dividends from key CPSEs
The Department of Investment and Public Asset Management has garnered ₹53,895 crore in dividend and disinvestment receipts so far this fiscal. At ₹43,843 crore, the dividend has already exceeded the 2023-24 target, even as the disinvestment revenue has remained low at ₹10,052 crore.
India likely to surpass FY24 target for state-run firms' dividends by at least $1.4 bn
The Indian government is likely to surpass its fiscal year target for dividends from state-run companies by at least INR 120 billion ($1.4 billion), potentially reaching INR 550-600 billion. This excess is expected to partially offset a shortfall in revenue from equity sales in state-run enterprises, projected to be less than INR 300 billion, representing a over-40% shortfall.
Surplus CPSE dividend unlikely to offset disinvestment revenue shortfall in FY24
The Indian government may face a disinvestment shortfall in FY24 due to potential delays in the strategic sale of IDBI Bank, possibly spilling into FY25. While surplus dividends from Central Public Sector Enterprises (CPSEs) might not fully compensate for the anticipated shortfall, the government is considering revising its combined disinvestment and dividend target of Rs 94,000 crore.
Foreign employee stock options: Documentation, taxation and disclosure requirements in India
he employer only takes care of the tax liability via TDS at the time of vesting. Any tax liability for dividend received and capital gains at the time of sale should be dispensed by the employee via advance tax payment.
Government eye on Hindustan Zinc dividend payout
The Indian government is ensuring Hindustan Zinc Ltd (HZL) does not put itself in financial trouble with its dividend distributions. A senior official stated the dividend was acceptable as long as the corporation did not have to borrow in order to provide generous payouts. Between July 2022 and the time of the report, HZL has announced dividends of INR 34,859 crore with Vedanta being the largest beneficiary with INR 22,630 crore.
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