The shares of HDFC Bank may gain traction on Monday, as today is the last day for investors to purchase shares of the bank in order to qualify for its 1:1 bonus issue.
The private-sector lender has set Tuesday, August 26, as the record date for determining shareholder eligibility. This means that only those who own the stock at the close of trading today will be eligible to receive bonus shares.
Key Highlights
- Investors must buy by today to qualify for HDFC Bank’s first-ever 1:1 bonus share issue.
- Shareholders holding on record date August 26 will receive one bonus share for each share owned.
The move is especially significant because it is HDFC Bank's first bonus issue in history, a watershed moment for India's largest private sector lender by market capitalization.
Under the 1:1 bonus ratio, shareholders will receive one additional share for every share they already own, effectively doubling the number of shares held while retaining the overall value of their investment.
Bonus issues are frequently viewed by market participants as a sign of management confidence, reflecting the bank's ability to reward shareholders while remaining financially strong.
Also Read: HDFC 1:1 Bonus Issue on August 26: Who Is Liable for LTCG Tax?
HDFC Bank's Q1 results
The bonus announcement follows on the heels of strong Q1FY26 results. HDFC Bank reported a 12% year-on-year increase in standalone net profit to Rs 18,155 crore from Rs 16,175 crore in the same period last year.
During the quarter, interest income increased by 6% to Rs 77,470 crore, up from Rs 73,033 crore in the same quarter of FY 25. The bank's net interest income (NII) increased by 5.4% year on year to Rs 31,440 crore, from Rs 29,840 crore in Q1 FY25.
Meanwhile, core net interest margin (NIM) was 3.35% on total assets, slightly lower than the 3.46% reported in the previous quarter ended March 2025. The decline was attributed to assets being priced faster than deposits.
