Down 50%? What's behind the drop in HDFC Bank share price today

HDFC Bank had announced a bonus issue in the ratio of 1:1, and the record date for this corporate action is August 27, 2025

Shares of HDFC Bank saw a technical correction of over 50 per cent on Tuesday from its previous close as the stock was trading ex-bonus on the national bourses. 

 

However, after adjusting for the bonus issue, the stock fell as much as 1.44 per cent in Tuesday's intraday session to ₹968.00 on the BSE. As of 10:23 AM, the stock was down 1.28 per cent at ₹969.65 per share compared to a 0.70 per cent decline in the benchmark BSE Sensex. 

 

With this, the stock was trading lower for the third straight session. The counter has risen 9.3 per cent this year, compared to a 4.9 per cent advance in the benchmark Nifty 50. HDFC Bank has a total market capitalisation of ₹14.87 trillion. 

 

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HDFC Bank bonus issue details 

The private sector lender had announced a bonus issue in the ratio of 1:1, i.e., 1 equity share for every 1 equity share held by shareholders. The record date for this corporate action is August 27, 2025.

 

'Ex-date' refers to the date when a stock begins trading without the entitlement to dividends or bonus shares. New buyers of the stock will not be eligible to receive these benefits.

 

This marks the lender's first-ever bonus issue. Previously, the company had split one share of ₹10 into five shares of ₹2 each in 2011, and later split one share of ₹2 into two shares of ₹1 each in 2019, as per reports. 

How to trade HDFC Bank post bonus issue?

The lender is showing profit-taking at the higher levels and the structure appears to be weak in the short term, according to Nilesh Jain, head of derivatives and technical research at Centrum Broking Ltd. "The immediate support is at ₹945, and the resistance is at the ₹1000 mark. It is likely to be tested it's support levels." 

Analysts' views after Q1 results 

HDFC Bank reported a 12.2 per cent year-on-year (Y-o-Y) increase in net profit to ₹18,155 crore in the April-June quarter of the financial year 2025-26 (Q1FY26). Its provisions jumped to ₹14,441 crore in the quarter, which includes ₹9,000 crore of floating provisions and ₹1,700 crore of additional contingent provisions. 

 

CLSA expects HDFC Bank to deliver 11 per cent loan growth in FY26 and 15-16 per cent thereafter. It projects a 10 basis points moderation in net interest margin (NIM) in FY26 compared with FY25, with recovery anticipated in FY27. The brokerage has raised its target price on the stock to ₹2,300, while maintaining an 'Outperform' rating. 

 

Jefferies said HDFC Bank remains one of its top sector picks, even as it trimmed estimates for FY26-27 marginally to factor in the recent repo rate and deposit rate cuts. The brokerage expects a sharper margin compression in the second quarter, with improvement thereafter.