HDFC Bank shares reached a new all-time high on Monday after India's largest private sector lender reported a 7% increase in consolidated net profit for Q4 FY25 and declared a staggering 2,200% dividend, sending bullish signals to investors and lifting banking stocks across the board.

The lender's stock opened strongly at Rs 1,922.05 on the Bombay Stock Exchange (BSE), up from its previous close of Rs 1,906.55, before rising further to an intraday high of Rs 1,950, representing a 2.28 percent gain. At the time of reporting, the share was trading at Rs 1,921.30, up 0.77 percent.

The share has gained consistently over the last five sessions, returning 9.02 percent. Over a five-year period, HDFC Bank has returned 107 percent, with a 25 percent return in the last 12 months, reinforcing its position as a consistent multibagger.

Quarter 4 Earnings and Financial Performance

HDFC Bank reported a consolidated net profit of Rs 18,835 crore for the March 2025 quarter, up 7 percent year on year. On a standalone basis, its net profit increased to Rs 17,616 crore from Rs 16,512 crore in the same quarter the previous year.

The bank's capital adequacy ratio stood at 19.6%, up from 18.8% the previous year, indicating a strong capital position. Following the results, HDFC Bank's American Depository Receipts (ADR) surged, closing more than 4% higher on international exchanges.

Massive Dividend Announcement

The board of HDFC Bank has recommended a dividend of Rs22 per share, or 2,200%, on a face value of Re1 for fiscal year 2024-25. Dividends are subject to shareholder approval.

The record date has been set for June 27, 2025, and will determine which shareholders are eligible to receive dividend payments.

The announcement had a positive impact on overall market sentiment for the banking sector. At the time of writing, the Nifty Bank index was up 1.14% to 54,909.15, indicating that this particular stock eader was boosting sentiment across the sector.

The bank's performance and dividend announcement stand apart from a generally positive market outlook for India's financial stability, owing to credit growth, falling NPAs, and domestic and international capital buffers.