HDFC Bank Announces 1:1 Bonus Issue and ₹5 Special Dividend: Check Record Date, Key Details Here

HDFC Bank, India’s largest private-sector lender, has taken a historic step by approving its first-ever bonus share issue in a 1:1 ratio. This means shareholders will receive one additional equity share for every one they already hold. Alongside this landmark move, the bank has declared a special interim dividend of ₹5 per share, reflecting its optimism following a strong quarter.

The financial results of HDFC Bank for the first quarter of FY26, which ended on June 30, were released along with the announcements. The bank's standalone net profit of ₹18,155 crore was a noteworthy 12.2% year-over-year increase from ₹16,175 crore in the first quarter of FY25.  Due to an increase in loan interest, net interest income also increased by 5.4% to ₹31,440 crore. The bank's overall revenue growth was further supported by the more than twofold increase in non-interest income, which includes fees and treasury gains.

Although provisions for bad loans surged to ₹144 billion—a fivefold increase—they were largely precautionary, intended to strengthen the bank's buffer, rather than in response to actual loan defaults. Credit growth was moderate at 6.7%, buoyed by a 17.1% rise in loans to small and medium enterprises.

Historic Bonus Issue and Dividend

• Bonus Shares: At a groundbreaking 1:1 ratio, eligible shareholders as of the record date will each receive an extra share at no cost. The record date is set for August 27, 2025, and the bonus shares are expected to be allotted by September 18, 2025.
• Special Dividend: A ₹5 per share special interim dividend has been approved. Shareholders on the record date, July 25, 2025, will be eligible for payout on August 11, 2025.

These moves mark a pivotal moment in HDFC Bank’s history—this is its first bonus share issuance since inception and adds to its tradition of shareholder rewards. The bank had previously declared a final dividend of ₹22 per share for FY25.

Conclusion

A major milestone was reached when HDFC Bank announced its first-ever 1:1 bonus share issue and ₹5 special interim dividend after a good Q1 FY26 performance. By combining strong earnings, more lending, and a robust fee revenue, the bank has given shareholders value and restored faith in its future growth trajectory. Market analysts have responded positively, upgrading targets and affirming the bank's robust fundamentals. Investors should get ready for share distributions and dividend payments in late August and early September.