HDFC Bank share price fell over a percent on Tuesday after the stock turned ex-date for bonus issue. HDFC Bank shares declined as much as 1.45% to ₹968.00 apiece on the BSE.
India’s largest private sector lender, HDFC Bank had announced a bonus issue along with its quarterly results last month. HDFC Bank bonus ratio was 1:1, which means shareholders will receive one bonus equity share of face value Re 1 for every fully paid-up equity share held.
HDFC Bank bonus share record date for determining the eligible shareholders to receive bonus equity shares is today, August 26, 2025. Investors holding HDFC Bank shares as of this date will be entitled to receive the bonus shares.
A bonus issue involves the distribution of additional shares to existing shareholders at no extra cost. On the ex-date, the share price typically adjusts in line with the bonus ratio. However, the overall value of an investor’s holdings remains unchanged.
Should you buy HDFC Bank shares after bonus issue?
According to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, the ex-bonus adjustment is purely an accounting process and does not impact the firm’s fundamentals or the overall value of investment.
However, he noted that investor perceptions and trading dynamics typically shift with shares becoming more affordable and liquidity improving due to higher float, trading activity often receives a boost.
“Fundamentally, HDFC Bank continues to demonstrate strength with steady earnings visibility, healthy asset quality, and consistent growth. We continue to remain bullish, with meaningful room for appreciation from current levels on long term. From a technical standpoint, momentum remains positive, supporting the constructive outlook,” said Tapse.
Santosh Meena, Head of Research at Swastika Investmart said that over the past five years, HDFC Bank delivered a robust 21% CAGR in profit, maintained a healthy dividend payout ratio (~23%), and achieved solid median sales growth (~16% over ten years).
“The dual benefit of a special dividend plus a bonus issue demonstrates HDFC Bank’s strong capital position and shareholder-centric approach. Even amid interest margin pressures, the bank’s robust fundamentals and governance support its long-term compounding potential. In the near term, HDFC Bank share price may see sluggish performance due to FII selling; however, the long-term outlook remains bullish,” Meena said.
HDFC Bank Share Price Performance
HDFC Bank share price has declined 3% over the past one month but remained largely unchanged on a three-month basis. The large-cap stock has gained 15% in the last six months and advanced 18% over the past year. Over a two-year period, HDFC Bank shares have risen 25%, while delivering a strong 74% return in the last five years.
At 10:42 AM, HDFC Bank share price was trading 1.16% lower at ₹970.85 apiece on the BSE.
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.
