HDFC Bank Makes Landmark Move: Announces First‑Ever 1:1 Bonus Issue and Rs 5 Special Interim Dividend
Mumbai, July 19, 2025
In a historic decision for India’s largest private sector bank, HDFC Bank today announced a bonus share issue on a 1:1 basis – marking the first time in its 30‑year history it has undertaken such a move. Alongside this, the bank declared a special interim dividend of Rs 5 per share, underscoring its robust financial health and commitment to rewarding shareholders.
Bonus Issue: A Milestone for Shareholders
HDFC Bank shareholders will receive one bonus equity share (Re 1 face value) for every one fully paid-up share held. The record date for the bonus issuance is set as Wednesday, August 27, 2025, as confirmed in the company’s stock exchange filing today.
The bank plans to credit these bonus shares on or before September 18, 2025. The issuance will increase the share capital, doubling the paid-up equity base from approximately Rs 766.79 crore to Rs 1,533.58 crore.
Special Interim Dividend: Generous Payouts
Today’s decision also includes a special interim dividend of Rs 5 per share (on Re 1 face value) – a significant 500% payout.
The record date for dividend eligibility is Friday, July 25, 2025, and the payouts are scheduled for Monday, August 11, 2025. The bank estimates the total dividend payout at around Rs 3,320 crore.
Financials Backing the Move
The bold earnings move is backed by stellar Q1 FY26 results:
Standalone net profit surged ~12–12.2% YoY to Rs 18,155 crore (up from ~Rs 16,175 crore).
Total interest income grew 6% YoY to Rs 77,470 crore, while net interest income (NII) climbed 5.4%, reaching Rs 31,440 crore.
Core net interest margin (NIM) slightly declined from 3.46% to 3.35%, as deposit repricing outpaced asset yields.
Operating costs rose ~4.9–5% to Rs 17,430–17,434 crore, keeping the cost-to-income ratio around 39.6%.
Provisions spiked sharply to Rs 14,442 crore, boosted by a hefty Rs 9,000 crore floating provision, following the IPO of subsidiary HDB Financial—though the consolidated net profit dipped to Rs 16,258 crore due to this provisioning.
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