Synopsis:
HDFC Bank shares rose over 1% to Rs 2021.90 after the lender announced plans to consider its first-ever bonus share issue and a special dividend on July 19. The board will also review Q1 results.
The shares of India’s largest private sector bank by assets rose ahead of a key board meeting scheduled for Saturday, July 19, where the lender will consider its first-ever bonus share issue and a special dividend.
With a market capitalisation of Rs 15,39,372 Crores, the share price of HDFC Bank Limited jumped over 1% on Wednesday to hit an intraday high of Rs 2021.90 per share from the previous day’s closing price of Rs 1995.30 per share.
What’s the News
HDFC Bank, India’s largest private sector lender, will consider its first-ever bonus share issue and a special dividend at its upcoming board meeting on Saturday, July 19.
If approved, this would mark the first bonus share issue in the bank’s history. So far, the only notable corporate actions by the bank include a stock split in 2011 where one Rs 10 share was split into five shares of Rs 2 each, and a subsequent split in 2019, where one Rs 2 share was split into two Rs 1 shares.
In addition to the bonus and dividend proposals, the bank will also announce its June quarter financial results during the same board meeting. The development follows the bank’s recent move to unlock value from its subsidiary, HDB Financial Services, where it raised Rs 10,000 crore through a stake sale as part of the Offer For Sale (OFS) process and Rs,. 2500 Crores via fresh offer through IPO.
About the Company
HDFC Bank is India’s largest private sector bank, incorporated in 1994 and started operations in 1995. It was promoted by HDFC Ltd, which was among the first to get RBI approval to set up a private bank.
In April 2022, HDFC Ltd merged with HDFC Bank, combining strengths in banking and housing finance. The merger allows the bank to offer seamless home loan services across urban and rural India.
As of March 31, 2025, the bank has 9,455 branches and 21,139 ATMs across 4,150 cities/towns, with 51% branches in semi-urban and rural areas. It has international branches in Hong Kong, Bahrain, Dubai, and GIFT City, and representative offices in Kenya, Abu Dhabi, Dubai, London, and Singapore, mainly catering to NRI home loan services.
The company reported a revenue of Rs 336,367 crore in FY25, up by 40.4 percent from its FY24 revenue of Rs 283,649 crore. Coming to its profitability, the company reported a net profit rise of 71.7 percent to Rs 73,440 crore in FY25 from Rs 65,446 crore in FY24. The stock delivered an ROE and ROCE of 14.5 percent and 7.51 percent, respectively.
Written By Rohan Pandey
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