HDFC Bank to consider first-ever bonus share issue on July 19; stock reacts positively

Shares of HDFC Bank rose over 1% Wednesday, in an otherwise weak broader market, after the lender informed exchanges that it would consider a proposal to issue its first-ever bonus shares on July 19, 2025. The board of the bank will also potentially declare a special interim dividend at a meeting scheduled on July 19.

If approved, the bonus share decision would mark a significant milestone in HDFC Bank’s corporate history, as the bank has never declared a bonus issue since its listing on the BSE and NSE in 1995.

Boosted by the development, HDFC Bank shares rose as much as 1.3% to ₹2,021.90 on the BSE, while its market capitalisation (m-cap) climbed to ₹15.35 lakh crore. Earlier in the day, the country’s largest bank in terms of m-cap opened higher at ₹2,014.20, extending the 0.63% gain it logged in the previous session.

Shares of HDFC Bank recently touched an all-time high of ₹2,027.40 during intraday trade on June 26, 2025, marking a sharp rebound of nearly 28% from its 52-week low of ₹1,588.50 hit on July 24, 2024. The rally coincided with the opening of the initial public offering (IPO) of HDB Financial Services, the bank’s non-banking financial arm, in which it held a 94.36% stake. Through the IPO, HDFC Bank divested shares worth around ₹10,000 crore via an offer for sale.

HDFC Bank, the country’s second most valued stock after Reliance Industries, has delivered a positive return of 23% in the last one year, while it has risen 21% in the past six months and over 3% in a month.

In an exchange filing this morning, HDFC Bank said that its board would consider and approve the financial results, issuing of bonus shares and a special interim dividend for the financial year 2025-26 during its upcoming meeting on July 19.

“A meeting of the board of directors of HDFC Bank Limited is scheduled to be held on Saturday, July 19, 2025 to inter-alia consider and approve the unaudited standalone and consolidated financial results of the Bank for the quarter ended June 30, 2025,” the release noted.

“The board would also consider declaration of a special interim dividend on the equity shares of the bank, for the financial year 2025-26; and issue of bonus shares in accordance with the applicable provisions and subject to approval of shareholders of the bank,” it added.

HDFC Bank dividend payment history

HDFC Bank has maintained a consistent track record when it comes to dividend payments. The bank recently declared a dividend of ₹22 per share on June 27, 2025. Before that, it announced a final dividend of ₹19.50 per share on May 10, 2024, and ₹19 per share on May 16, 2023. In previous years, the dividend payout was ₹15.50 per share on May 12, 2022, and ₹6.50 per share on June 29, 2021, as per BSE data.

On the earnings front, HDFC Bank is projected to post a 5.9% year-on-year (YoY) rise in net profit to ₹17,130 crore in Q1 FY26, compared to ₹16,175 crore in the corresponding period last year, according to estimates by Motilal Oswal Financial Services. Net interest income (NII) is expected to increase by 6.9% YoY to ₹31,900 crore from ₹29,837 crore. The brokerage expects the bank’s cost ratios to remain in check and asset quality to stay stable.

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