Bank of India dividend 2026: Rs 4.65, May 29 record date

Why Bank of India shares are in focus

Bank of India shares are expected to remain in focus after the public sector bank announced a dividend recommendation for the financial year 2025-26. The development comes during a broader round of dividend declarations by public sector undertakings and state-owned lenders after their March 2026 results. Dividend actions often draw attention because they set expectations on cash returns to shareholders, subject to final approvals. In Bank of India’s case, the bank has also specified a record date, which determines who is eligible for the payout.

What the board approved for FY2025-26

According to the bank’s stock exchange filing, the board of directors recommended and approved a dividend for FY2025-26. The filing states a dividend of Rs 4.65 per equity share with a face value of Rs 10 each (fully paid up). The bank described this as 46.50% per equity share in the same filing. The broader coverage around the announcement also referred to a “56% dividend” and separately used the term “465%” for FY26, reflecting how dividend percentages are sometimes cited relative to face value.

Dividend is subject to shareholder approval

Bank of India also noted that the dividend is not final until shareholders approve it. The exchange filing specifies that the recommended dividend is subject to approval at the “ensuing Annual General Meeting” of the bank. This is a key procedural step for most listed companies and public sector entities declaring final dividends. Investors tracking dividend income typically watch for the AGM outcome and subsequent dividend payment timelines.

Bank of India dividend record date: May 29, 2026

The bank has fixed May 29, 2026 as the record date, also described as the cut-off date, for the purpose of dividend payment. The filing clarifies that shareholders who have shares as on May 29, 2026 will be eligible for the dividend payment. Record dates matter because they align with settlement rules and help determine the list of eligible shareholders. For investors, this date is the practical checkpoint when planning entry or holding decisions around dividends.

How eligibility works: record date and the ex-dividend cut-off

The article also explains the standard market convention around eligibility. Only shareholders who own the stock before the ex-dividend date are eligible to receive the dividend. The record date is when the company identifies which shareholders are eligible for the dividend. If an investor buys the stock on or after the ex-dividend date, they typically do not receive that dividend.

Other PSU dividend announcements drawing attention

The dividend season is not limited to Bank of India. Several PSUs have announced dividends alongside financial results for the quarter and year ended March 31, 2026. Based on recent exchange filings cited in the article, names mentioned include State Bank of India (SBI), Indian Bank, Coal India, Chennai Petroleum Corporation, BHEL, and Mazagon Dock Shipbuilders. These announcements, taken together, indicate continued emphasis on shareholder payouts across major state-owned companies and lenders.

SBI and Indian Bank: key details cited

SBI, described as the nation’s largest PSU lender, announced a dividend of Rs 17.35 per share on a face value of Re 1 each for the year ended March 31, 2026. The SBI board declared this dividend at a meeting on May 8, 2026. The record date to determine eligibility was set for May 16, 2026, and if approved, the payment date was fixed as June 4, 2026.

Indian Bank’s board approved a dividend of Rs 18.25 per share during its April 29, 2026 meeting. The dividend table included in the article also lists Indian Bank’s record date and ex-dividend date as June 10, 2026.

Snapshot table: dividend data mentioned in the report

PSB payouts and government dividend inflows

The article highlighted that public sector banks recorded an increase in dividend payouts. Total PSB dividend in FY25 was stated at Rs 34,995 crore, up 25.7% from Rs 27,853 crore in the previous year. The government’s share was cited at Rs 22,775 crore, up from Rs 18,092 crore received in the previous year.

Separately, the Reserve Bank of India announced a dividend of Rs 2.7 lakh crore in May 2026, which equals Rs 270,000 crore. The article also cited expectations that the government may budget Rs 2-3 lakh crore (Rs 200,000-300,000 crore) as dividend income from RBI and PSBs in Union Budget 2026, compared with Rs 2.56 lakh crore in the previous budget estimate.

RBI draft dividend rules: what changes for banks

The article also pointed to proposed RBI rules that would allow private banks to pay significantly higher dividends than state-owned banks by linking payouts to core capital instead of total capital. Under the proposed 2026 norms, the RBI links dividend payout to core equity tier 1 (CET 1) capital. The current framework ties dividend limits to a two-parameter approach using the bank’s CRAR and net non-performing advances (NPA).

The proposed rules introduce adjusted PAT, computed as PAT minus NPA minus extraordinary income, fair value gains, and provision reversals. The stated objective is to prevent dividend payouts from one-off or unrealised gains. Banks can distribute up to 100% of adjusted PAT, subject to a hard cap of 75% of reported PAT.

Market impact: what investors are watching

For Bank of India, the immediate market focus is the combination of a per-share dividend figure and a clearly stated record date. Across PSUs and PSBs, the clustering of dividend announcements around annual results highlights how payout decisions are being communicated alongside broader fiscal and regulatory developments. The mention of rising PSB dividends, a large RBI surplus transfer, and draft dividend norms adds context for how dividend capacity and policy constraints may evolve.

At the same time, the article notes that shareholders of these public sector entities must wait for final approval at their respective AGMs before dividends are credited. For dividend-focused investors, that approval process, record dates, and any stated payment dates remain the practical milestones.

Analysis: how the dividend narrative is shifting

A key thread in the article is the role of regulation and capital rules in shaping bank dividends. The draft RBI framework ties payouts more closely to core equity and introduces an adjusted profit metric to filter out non-recurring or unrealised components. The article also cited proposed payout ratio ceilings of 50% for private banks and 37% for PSU banks.

As per ICRA estimates referenced for FY2026, the dividend payout limit for PSU banks under the proposed norms could rise to around Rs 70,000 crore versus Rs 67,000 crore under current norms (payout ratio 37% versus 35%). For private banks, ICRA’s estimate was Rs 1,05,000 crore versus Rs 63,000 crore under current norms (payout ratio 59% versus 35%). These figures frame why the market is paying attention not just to individual bank dividends, but to the rulebook that may define how much cash banks can return.

Conclusion

Bank of India has recommended a dividend of Rs 4.65 per share for FY2025-26, with May 29, 2026 set as the record date, subject to shareholder approval at the AGM. The announcement sits within a wider set of PSU and PSB dividend declarations and a broader policy discussion triggered by RBI’s draft dividend framework. Investors will track AGM approvals, record dates, and any further updates on dividend payment schedules and the proposed RBI norms.