HDFC Bank is all set to create history by considering its first-ever bonus issue of shares on July 19, as per an exchange filing released on July 16. This major announcement comes from India’s largest private lender, and it’s creating buzz across Dalal Street.
In addition to the bonus shares, the board will also review the proposal for a special interim dividend for FY26. If both decisions get approved, it could significantly reward existing shareholders.
“This would mark the first bonus issue in HDFC Bank’s history,” the bank highlighted in its disclosure.
However, investors will need to wait a little longer to find out the record date, which will determine eligibility for both the bonus shares and the special dividend. The date is expected to be declared shortly after the board meeting.
Stock Performance and Past Corporate Actions
The bank’s shares have been on a steady rise, gaining over 21% in the past six months and nearly 4% in the past month. On July 16 morning, HDFC Bank shares were trading with marginal gains at ₹2,005 apiece. In 2025 alone, the stock has climbed more than 12%.
Historically, HDFC Bank has preferred stock splits over bonus issues. The last two corporate actions before this were stock splits announced in 2011 and 2019. A bonus issue would signal a fresh strategy to boost investor confidence and enhance liquidity.
Also Read: HDB Financial Q1 Net Profit Slips 2% to Rs.568 Cr in First Post-Listing Report
Recent Moves and Financial Performance
Recently, HDFC Bank sold 13.51 crore shares worth ₹9,814 crore of its subsidiary HDB Financial Services, following which it still retains a 74.19% stake in the NBFC. HDB Financial also made a notable debut on the stock markets.
Financially, the bank continues to outperform expectations. In Q4 FY25, it reported a net profit of ₹17,616 crore, a 6.7% rise from the year-ago quarter. Analysts were impressed by this beat.
On the asset quality front, the gross NPA ratio improved to 1.33% as of March 31, 2025, from 1.42% in December 2024, though slightly higher than the 1.24% recorded a year ago. The net NPA ratio stood at 0.43%, showing stable improvement quarter-on-quarter.
