In a first, HDFC Bank to consider issuing bonus shares on July 19

The country’s largest private lender HDFC Bank will consider issuing, for the first time since its inception, bonus shares along with special interim dividend for FY26 on July 19, according to an exchange filing.

“A meeting of the Board of Directors of HDFC Bank…is scheduled to be held on Saturday, July 19, 2025, to inter-alia consider and approve the unaudited standalone and consolidated financial results of the bank for the quarter ended June 30, 2025…the Board would also consider the following proposal(s): (i) Declaration of a Special Interim Dividend on the equity shares of the bank, for the financial year 2025-26; and (ii) Issue of bonus shares in accordance with the applicable provisions and subject to approval of shareholders of the bank,” the notice said.

In April, HDFC Bank’s market capitalisation crossed the ₹15-lakh crore mark, becoming only the third domestic company after Reliance Industries and Tata Consultancy Services to achieve this feat. In the last week of June, its share price crossed the ₹2,000-mark for the first time, hitting a record high. Its stock has appreciated over 23 per cent over a one-year time frame.

Currently, its market cap is at over ₹15.3 lakh crore.

Long consolidation

According to Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, HDFC Bank’s stock has been in a long consolidation over the last few years. After major events including change in MD & CEO and merger of erstwhile HDFC with the bank, the markets have not heard major positive news from the bank, he said.

Its latest balance sheet shows that the bank is sitting on nearly ₹5-lakh crore worth of reserves and surplus.

“Being the largest private bank with strong balance sheet and considering that the bank will grow faster in current interest rate easing cycle, after successfully managing the merger with HDFC, the bank may have wanted to monetise their reserves and offer bonus shares for the first time to gain market confidence,” he said. WealthMills Securities has recommended a buy on dip on the bank’s stock and expects 10-15 per cent upside to the bank’s stocks by March 2026.

Published on July 16, 2025