HDFC Bank, India's most valuable lender by market capitalization, is in the spotlight today as it prepares to go ex-bonus on August 26 for its highly anticipated 1:1 issue. The stock closed at Rs 1,964.50 on Monday, but when markets open this morning, the share price will adjust in the same ratio. On some trading apps, this may appear to be a steep 50% drop, but investors should not panic. Bonus shares are being distributed proportionally. For HDFC Bank, it is one for every one held, with no dilution of equity.
Key Highlights
- HDFC Bank turns ex-bonus today; share price halves on open, but shareholding simply doubles.
- Only shareholders holding stock by August 27 record date—one day after ex-date—are eligible for bonus.
The move promises increased liquidity on the counter for HDFC Bank's 36 lakh retail investors, 698 mutual fund schemes, insurers such as LIC, foreign investors such as Vanguard and the Government of Singapore, and even over 32,000 NRIs.
The record date to qualify for the bonus shares is Wednesday, August 27. Any investor who owned the stock on that day will be eligible.
Brokerages remain positive about the bank. JM Financial has reported strong loan growth across all segments, with deposit momentum expected to boost the credit-deposit ratio to 87-90 percent. It also expects margins to benefit from the June rate cut and credit costs to gradually normalize.
Kotak has a 'Add' rating, while Motilal Oswal has reiterated its 'Buy' recommendation, stating that loan growth should broadly match the system in FY26 and outpace it in FY27, driven by demand from MSMEs and rural markets.
Also Read: HDFC Bank's First-ever 1:1 Bonus Issue: Final Day to Purchase Shares
The move by HDFC Bank comes amid a busy year for bonus issues. Over 70 companies have already gone ex-bonus in 2025. Big names like Nestle India, Bajaj Finance (4:1), V-Mart Retail (3:1), and BSE (2:1) have already rewarded shareholders, while Ashok Leyland and Container Corporation of India were among the July bonus announcements.
The banking sector has also been known to reward investors in this manner, with notable examples including ICICI Bank (2017), Kotak Mahindra Bank (2015), Federal Bank (2015), and Karnataka Bank (2020). In 2022, AU Small Finance Bank conducted a 1:1 issuance.
Interestingly, HDFC Bank isn't alone today. Karur Vysya Bank has also gone ex-bonus, offering shareholders one bonus share for every five held.
