HDFC Bank to Weigh First-Ever Bonus Shares, Special Dividend on July 19

On Saturday, July 19, 2025, HDFC Bank, the nation's largest private lender, will convene its board of directors to discuss several key recommendations. In addition to the quarterly financial review for Q1 FY26, the agenda items include the bank's first-ever bonus share issue and a special interim dividend for the current fiscal year.

When the announcement was made in a regulatory filing on July 16, investors showed a great deal of interest. The planned corporate changes, which are subject to regulatory and shareholder approval, indicate that the bank is focused on capital returns while maintaining a solid operating foundation.

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Bonus Issue and Dividend

The HDFC Bank board is considering distributing bonus equity shares, a first for the bank, in a move that benefits shareholders. The board will also consider a special dividend payment for FY2025–2026 at the same time. These suggestions indicate strong earnings momentum and an increase in confidence in the first half of FY26.

The unaudited standalone and consolidated financial statements for the three months ended June 30, 2025, will be approved concurrently with the decisions.

Performance Expectations for Q1

Experts expect HDFC Bank's net profit for the first quarter to be ₹17,130 crore, representing a 5.9% increase over the same period last year. It is anticipated that Net Interest Income (NII) will reach ₹31,900 crore, an increase of over 7% year-over-year, but monetary policy effects may cause margins to contract somewhat.

Analysts will closely monitor management's comments on credit growth and margin outlook, while cost effectiveness and asset quality are expected to remain stable.

HDFC Bank Stock Price Movement

This follows a broader upward trend, with the scrip gaining 5% over the last month, 8% in three months, and over 24% year-on-year.

Over a five-year horizon, HDFC Bank’s stock has nearly doubled, delivering a return of 91%, reflecting long-term investor faith in the bank’s performance and stability.

HDFC Bank Historical Dividend Track Record

The bank last declared a ₹22 per share dividend in June 2025. Previous distributions include ₹19.50 in 2024, ₹19 in 2023, and ₹15.50 in 2022, indicating a strong history of consistent shareholder payouts.

Conclusion

Shareholders may find the next board meeting, scheduled for July 19, to be crucial.  HDFC Bank is poised to enhance investor value while maintaining a sound financial outlook, with potential for a bonus issue and a special interim dividend.  As investors await the results, all eyes will be on the bank's ongoing policy of striking a balance between rewarding shareholders and driving expansion.