HDFC Bank Announces First-Ever 1:1 Bonus Issue and ₹5 Special Interim Dividend

In a significant announcement for its shareholders, HDFC Bank has declared its first-ever 1:1 bonus share issue, alongside a ₹5 per share special interim dividend, reflecting the bank’s strong performance and confidence in future growth. 

HDFC Bank Announces First-Ever 1:1 Bonus Issue and ₹5 Special Interim Dividend

The decision was approved by the bank’s Board of Directors during a meeting held on July 20, 2025.

Key Announcements

Bonus Issue Ratio: 1:1 (One bonus share for every one share held)

Record Date: To be announced soon for determining eligible shareholders

Special Interim Dividend: ₹5 per equity share of face value ₹1 each

This marks the first bonus issue in HDFC Bank’s history, making it a landmark move for India’s largest private-sector bank by market capitalization.

Strategic Reasoning Behind Bonus

The bonus issue is aimed at:

Enhancing retail investor participation

Improving stock liquidity in the market

Rewarding long-term shareholders

The interim dividend, on the other hand, comes as a reward to investors amid the bank’s strong quarterly earnings and robust financial position following its merger with parent company HDFC Ltd.

Market Impact

Following the announcement, HDFC Bank’s shares saw increased trading activity, with market analysts calling the move “shareholder-friendly and growth-aligned.” The development is expected to attract more retail and institutional interest, especially ahead of the record date announcement.

What This Means for Shareholders

Shareholders will receive one additional share for each share held, effectively doubling their shareholding (without altering their investment value).

They will also receive ₹5 per share as a cash dividend, providing immediate financial benefit.

This dual move reflects HDFC Bank’s strong balance sheet, rising profitability, and strategic focus on long-term value creation. Further details, including the ex-dividend and record dates, will be published on the bank’s investor relations portal.