HDFC Bank stock up 1% as board to mull bonus, special dividend on July 19

HDFC Bank share price rose 1.3% after the bank announced it will consider its first-ever bonus share and a special dividend along with Q1 results on July 19, 2025.

HDFC Bank share price today

 

Shares of HDFC Bank gained 1.3 per cent at ₹2,021.90 on the BSE in Wednesday’s intra-day trade after the bank said it shall consider its maiden bonus issue on Saturday, July 19, 2025. The board will also consider a special dividend on equity shares for the financial year 2025-26 (FY26).

 

The stock price of the private sector lender was trading close to its record high of ₹2,027.90 touched on June 26, 2025. In the past six months, HDFC Bank has outperformed the market by surging 22 per cent, as compared to 7 per cent rise in the BSE Sensex.  READ STOCK MARKET UPDATES TODAY LIVE

 

HDFC Bank to consider bonus, special dividend on July 19

 

HDFC Bank today informed the stock exchanges that a meeting of the board of directors of HDFC Bank was 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 (Q1FY25).

 

At the said meeting, HDFC Bank said the board would also consider the declaration of a special interim dividend on the equity shares of the Bank, for the financial year 2025-26; and issue of bonus shares in accordance with the applicable provisions and subject to approval of shareholders of the Bank.

 

According to corporate actions information available on the BSE, HDFC Bank is to consider first ever bonus share. The only prior corporate actions carried out by HDFC Bank was a stock split on July 14, 2011, when it split one share of ₹10 into five shares of ₹2, and further on September 19, 2019, ₹2 to ₹1.

 

What are bonus shares?

 

Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. The basic principle behind bonus shares is that the total number of shares increases with a constant ratio of number of shares held to the number of shares outstanding.

 

Companies issue bonus shares to encourage retail participation and increase their equity base. When the price per share of a company is high, it becomes difficult for new investors to buy shares of that particular company. Increase in the number of shares reduces the price per share. But the overall capital remains the same even if bonus shares are declared.

 

HDFC Bank business outlook

 

With a strong institutional framework and rising urbanisation, the Bank is confident about the long-term housing demand in India and is well-positioned to be the preferred home loan partner, HDFC Bank said in its FY2024-25 (FY25) annual report.

 

India is poised to maintain its position as one of the fastest growing economies globally in FY2025-26 (FY26). The Reserve Bank of India (RBI) anticipates GDP to grow by 6.5 per cent in FY26, similar to FY25 GDP growth. 

 

Amidst global headwinds, India’s GDP growth is likely to be supported by domestic factors in FY26. Rural consumption demand is expected to improve on the back of healthy agricultural production. Moderation in inflation, tax cuts and interest rate cuts by the RBI are expected to support urban consumption. Government’s capital expenditure continues to support investments, while an expected improvement in consumption demand could also crowd-in private investments. Domestic inflation is projected to average 3.7 per cent in FY26, assuming a normal monsoon, compared to 4.6 per cent in FY25.

 

The management believes HDFC Bank has successfully navigated the merger and the Bank is now positioned for faster growth. The reset in loan growth and the consolidation of the merger has resulted in a much stronger bank that is now poised to capitalize further on growth opportunities. As stated earlier, the management said they are confident of growing the Bank’s advances on par with the system in FY26 and higher than the system in FY27.