The 31 combined state-run and private banks may soon be able to hand over 131% higher dividends to shareholders, driven by the Reserve Bank of India’s (RBI) newly proposed framework on dividend distribution for commercial banks. An assessment of FY2024-25 financials for these listed banks shows that while they collectively paid about Rs 64,300 crore in dividends last year, the draft norms would allow payouts of nearly Rs 1,48,600 crore, thanks to a more formula-based, capital-sensitive approach to determining limits. State-run banks could distribute 37% higher dividends, rising to Rs 47,997 crore from the Rs 34,998 crore paid in FY25. Private sector banks would see a far sharper jump, becoming eligible to pay up to Rs 1 lakh crore, compared with the Rs 29,258 crore they actually distributed.