HDFC Bank declares 1st ever bonus share issue at 1:1 ratio

HDFC Bank, India’s largest private sector lender, on Saturday announced its first-ever bonus issue, with the board approving the allotment of shares in a 1:1 ratio.

Under the terms of the issue, shareholders will receive one fully paid-up equity share of face value Rs 1 for every one existing fully paid-up equity share of Rs 1 held.

The decision marks a significant milestone for the bank, which has never undertaken a bonus issue since its inception.

The record date for determining the entitlement of members to receive the bonus equity shares has been set as Wednesday, August 27, 2025.

In addition to the bonus issue, the bank’s board also approved a special interim dividend of Rs 5 per equity share of face value Re 1 each fully paid-up, representing a 500% payout, for the financial year 2025–26.

The record date to determine eligibility for the dividend is Friday, July 25, 2025, and the payment will be made to eligible shareholders on Monday, August 11, 2025.

The bonus and special dividend announcements came alongside the lender’s first-quarter financial results. HDFC Bank reported a 12% year-on-year rise in standalone net profit to Rs 18,155 crore for the quarter ended June 30, 2025, up from Rs 16,175 crore in the same period last year.

The lender's total interest income rose 6% year-on-year to Rs 77,470 crore, compared with Rs 73,033 crore in the year-ago quarter. Net interest income (NII), a key measure of lending profitability, stood at Rs 31,440 crore, a growth of 5.4% over Rs 29,840 crore reported in Q1 FY25.

The banks said its core net interest margin for the quarter was 3.35% on total assets, reflecting a lag in deposit repricing relative to asset yields. This was slightly lower than the 3.46% reported in the previous quarter ended March 31, 2025.

Meanwhile, the lender's operating expenses for the quarter rose to Rs 17,430 crore from Rs 16,620 crore a year earlier. The cost-to-income ratio, excluding transaction gains, was 39.6% for the quarter.