
Overview
HDFC Bank, India’s largest private sector lender, has declared its first-ever bonus issue of shares in a landmark move aimed at rewarding shareholders and bolstering investor sentiment. Alongside this, the bank has also announced a special interim dividend, enhancing its appeal to both retail and institutional investors.
Key Highlights
1:1 Bonus Share Issue
- Ratio: Shareholders will receive 1 bonus share for every 1 fully paid-up equity share held as of the record date.
- Record Date: The eligibility cut-off for receiving the bonus shares is August 27, 2025.
- Number of Shares: The bank will issue approximately 76.68 crore bonus shares of face value ₹1 each, potentially increasing its paid-up share capital from ₹766.79 crore to ₹1,533.58 crore.
- Share Allotment: Bonus shares are expected to be credited to eligible shareholders’ accounts by September 18, 2025, which is within two months from board approval.
- Historic Nature: This marks the first bonus issue in HDFC Bank’s history since its listing in 1995.
Special Interim Dividend
- Dividend Amount: A special interim dividend of ₹5 per equity share (face value ₹1) has been declared, amounting to a 500% payout for FY26.
- Record Date: The cut-off for dividend eligibility is July 25, 2025.
- Payment Date: The dividend is scheduled to be paid on August 11, 2025 to eligible shareholders.
Financial Performance Context
The announcements came as HDFC Bank reported strong results for Q1 FY26:
- Net Profit: Rose to ₹18,155 crore, a 12% year-on-year increase.
- Interest Income: Increased by 6% to ₹77,470 crore.
- Net Interest Margin (NIM): Stood at 3.35%, slightly lower year-over-year due to deposit repricing.
- Cost Control: The bank maintained an efficient cost-to-income ratio despite rising expenses, showcasing resilience.
Strategic Implications
- Shareholder Reward: The bonus issue and dividend together represent a substantial benefit to HDFC Bank shareholders, reinforcing the bank’s commitment to value creation.
- Market Impact: These moves are likely aimed at boosting investor confidence and attracting new investments, especially as the bank continues to post solid growth amid sectoral challenges.
- Capital Structure: The bonus shares will be funded from the Securities Premium Account, for which the bank holds ample reserves.
Important Dates Table
Event | Date |
---|---|
Board Approval | July 19, 2025 |
Dividend Record Date | July 25, 2025 |
Dividend Payment | August 11, 2025 |
Bonus Share Record Date | August 27, 2025 |
Bonus Allotment Deadline | September 18, 2025 |
Conclusion
HDFC Bank’s decision to approve a 1:1 bonus issue and a ₹5 special interim dividend marks a milestone in its history. The combination of robust financial performance, a shareholder-friendly payout, and strategic capital allocation positions the bank favorably for sustained growth and market leadership.

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