HDFC Bank's Board of Directors has approved a 1:1 bonus share issue, which means that shareholders will receive one additional share for every share they own. The record date for determining shareholder eligibility is August 27, 2025.
However, since the stock market will be closed on that day, the ex-date will be August 26, 2025. This means that only those who own HDFC Bank shares at the close of trading on August 26, 2025 will be eligible to receive the bonus shares credited to their Demat accounts.
Key Highlights
- HDFC issues first-ever 1:1 bonus shares on record date August 27, along with ₹5 special interim dividend.
- LTCG tax on bonus shares depends on cost basis using fair market value under Section 112A rules.
Along with the bonus shares, HDFC Bank has declared a special dividend of Rs 5 per share to highlight its strong financial performance and shareholder-friendly approach.
Tax Rules for HDFC Bank Bonus Shares
For tax purposes, the cost of acquiring bonus shares is treated as zero. If the bonus shares are sold within a year, the entire sale proceeds will be considered short-term capital gains (STCG) and taxed at 20%.
If the bonus shares are sold after one year, they will be classified as long-term capital gains (LTCG). In this case, the tax liability will be 12.5% of the gains over Rs 1.25 lakh in a fiscal year.
Most small or marginal retail investors benefit from the LTCG exemption of up to Rs 1.25 lakh, which means they pay little or no tax when they hold bonus shares for more than a year.
As a result, such investors should view the bonus shares as a long-term wealth compounding opportunity rather than a quick trading profit.
HDFC Bank's fundamental outlook
From a business standpoint, HDFC Bank continues to have a strong balance sheet and industry-leading asset quality. Despite making provisions of more than Rs 10,000 crore in Q1 FY26, its profit after tax (PAT) increased by 12.2 percent year on year. Net interest income (NII) increased by 5.4 percent to Rs 31,440 crore, while net interest margins fell slightly to 3.35 percent due to deposit cost pressures.
Loan growth remained consistent, increasing by 6.7 percent year on year, led by retail (+8.1 percent) and SME (+17.1 percent), with modest growth in corporate loans (+1.7 percent). Asset quality is among the best in the sector, with gross NPAs at 1.40 percent and net NPAs at 0.47 percent, aided by robust provisioning buffers. The capital adequacy ratio is 19.9 percent, well above regulatory requirements, giving the bank enough room for future growth.
Also Read: HDFC Considers Issuing Bonus Shares for the First Time
HDFC Bank's Technical Outlook
On the price charts, HDFC Bank has been in a strong uptrend since breaking above Rs 1850. Technical analysis suggests that as long as it remains above this critical support level, it may maintain its upward momentum, with near-term targets of Rs 2,050-Rs 2,100.
If the stock can break past Rs 2,100, it could extend its rally to around Rs 2,350. Investors should consider holding their positions and buying on dips with proper risk management in place.
