HDFC Bank on Wednesday announced that the company’s board of directors will consider a special dividend and also issue bonus shares at its meeting scheduled for July 19. The board will also consider and approve the unaudited standalone and consolidated financial results of the Bank for the quarter ended June 30, 2025.
In a regulatory filing, HDFC Bank said, “…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 shareholderof the Bank.”
The record date to identify shareholders eligible for the upcoming bonus shares and special dividend has not been announced yet.
If approved, this would mark the first ever bonus issue of shares announced by the private sector bank.
Apart from dividend declarations, the company’s previous corporate actions included stock splits in 2019 and 2011.
Strong FY25 performance supports payout proposal
The bonus share issuance and special dividend proposal reflect HDFC Bank’s financial health and management’s confidence in sustained growth. The Bank had recently released its business update that showed healthy growth in advances and advances under management, signaling strong operational performance heading into the new fiscal year.
HDFC Bank recently completed its first full financial year since its merger with HDFC on July 1, 2023. In a report, HDFC Bank announced that the banking major posted a 10.7 per cent rise in net profit to Rs 67,347.4 crore for FY25. Net interest income, meanwhile, went up by 13 per cent to Rs 1,22,670.1 crore. The bank’s net interest margin stood at 3.48 per cent.
In FY25, the bank’s deposits grew 2.5 times faster than its loans, helping it to bring down the credit-to-deposit ratio to 96 per cent, from around 110 per cent at the time of the merger. Sashidhar Jagdishan, Managing Director and CEO, HDFC Bank, said, “Our deposits grew 2.5 times faster than loans. We took affirmative steps to bring down the credit-to-deposit ratio and reduce the percentage of high-cost borrowings,” he noted. However, HDFC Bank now aims to grow its loan book in line with the banking system in FY26 and beat the system growth in FY27, he added.
Shares of HDFC Bank were up 0.62 per cent at 9:50 am today at a trading price of Rs 2,007.60.