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News for India > Business > HDFC Bank first-ever bonus issue: Last day to buy shares of the private sector lender before 1:1 payout | Stock Market News
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HDFC Bank first-ever bonus issue: Last day to buy shares of the private sector lender before 1:1 payout | Stock Market News

Last updated: August 25, 2025 10:05 am
4 months ago
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Strong Q1 PerformanceStock Price Trend

The shares of HDFC Bank gained half a percent on Monday to ₹1977.55 as investors rushed to secure holdings before the private sector lender’s first ever bonus issue. Today marks the final day to purchase shares of the bank to qualify for the corporate action.

HDFC Bank has set Wednesday, August 27, as the record date to determine shareholder eligibility. This means only those holding the stock at the close of trading today will be entitled to receive bonus shares. The bank’s board of directors had approved the allotment on July 19, rewarding long-term investors.

“This has reference to our intimation dated July 19, 2025, wherein the Board of Directors of HDFC Bank Limited (‘Bank’) had approved the issuance of bonus shares in the ratio of 1:1, i.e., 1 equity share for every 1 equity share held by the shareholders as on the record date, i.e., August 27, 2025 (‘Record Date’), and also an increase in the Authorised Share Capital of the Bank and a consequential amendment to the Memorandum of Association, subject to applicable approvals, including from the Members of the Bank,” HDFC Bank said in a stock exchange filing dated August 3.

Under India’s T+1 settlement system, investors need to purchase shares at least one trading session ahead of the record date to be eligible for the bonus issue. Buying on the record date will not allow the shares to reflect in demat accounts in time. As per the bank’s regulatory filing, the bonus shares are scheduled for allotment on or before September 18, 2025, and will become tradable from the next market session.

A bonus issue is the distribution of free shares to eligible shareholders. The share price typically adjusts in proportion to the bonus ratio at the ex-date, though the overall value of holdings remains unchanged.

Strong Q1 Performance

In its first-quarter results, HDFC Bank reported a profit after tax of ₹18,155.21 crore, marking a 12.24 percent increase from ₹16,174.75 crore in the same period last fiscal. Interest income stood at ₹77,470 crore, up 6 percent from ₹73,033 crore a year ago. Meanwhile, interest expenses rose 6.6 percent year-on-year to ₹46,032.23 crore, compared to ₹43,196 crore in the previous fiscal.

Stock Price Trend

HDFC Bank’s stock has lost 2 percent in August after six consecutive months of gains. It gained 1 percent in July, 3 percent in June, 1 percent in May, 5 percent in April, 5.5 percent in March, and 2 percent in February, but shed 4 percent in January. Over the last one year, the stock has added 21 percent. The lender hit its 52-week high of ₹2,036.30 in July 2025 and a 52-week low of ₹1,613.40 in October 2024.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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