HDFC Bank Ltd. is set to give its first-ever bonus share to shareholders after the board approved the plan on Saturday.
India's largest private lender will give one bonus equity share of face value of Rs 1 each for every one fully paid-up equity share held. The record date for determining the eligible shareholders to receive bonus equity shares is Wednesday, Aug. 27, 2025, the bank said in a stock exchange filing.
The bonus shares will be alloted on or before Sept. 18, 2025.
A bonus issue is the distribution of free shares to eligible shareholders. The share price adjusts in the ratio of the bonus allotment at the ex-date. However, this does not affect the overall value of holdings.
Foreign institutions own a 48.84% stake in the private lender, and over 36 lakh retail investors holding nominal share capital up to Rs 2 lakh have a combined equity stake of 10.3% as of June, according to BSE shareholding data.
HDFC Bank recently sold stake worth Rs 10,000 crore in its NBFC unit HDB Financial Services Ltd. as part of the Offer For Sale (OFS) component during its IPO.
The bank's issued, subscribed and paid-up capital will increase from Rs 766.79 crore to Rs 1,533.58 crore following the bonus issue.
Besides its maiden bonus issue, HDFC Bank also announced a special dividend of Rs 5 per share for financial year 2026.
HDFC Bank Q1 Results
Despite higher provisions, HDFC Bank reported a standalone profit after tax was at Rs 18,160 crore, up over 12% on year.
Provisions and contingencies against bad loans rose to Rs 14,441 crore as against Rs 2,602 crore a year ago. Ostensibly, the bank utilised proceeds from the initial public offering of its arm HDB Financial Services to make floating provisions, also described as additional prudential provisions against bad loans. The floating provision stood at Rs 9,000 crore during the quarter.
Asset quality of the bank worsened slightly, gross non-performing assets ratio rose to 1.4% at the end of June quarter compared with 1.33% in the previous quarter. Net NPA also rose 0.47% from 0.43% in the March quarter.
The bank's net interest income rose 5% on a year on year basis.
HDFC Bank share price settled 1.5% lower at Rs 1957.4 on the BSE on Friday, compared to a 0.6% decline in the benchmark Sensex. The stock has risen 22% in the last 12 months and 9.7% year-to-date.
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