Mumbai, July 19, 2025 – HDFC Bank announced its first-ever bonus share issue since 1995 alongside a special dividend, rewarding shareholders despite mixed Q1 results. The board approved a 1:1 bonus issue (one free share per held) and a ₹5 per share special interim dividend.
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Key Details:
Bonus Shares: Record date set for August 27, 2025. 766 crore new ₹1 shares will be issued.Dividend: ₹5/share payout; record date July 25, 2025, payment by August 11, 2025.
Q1 Financials:
Net profit rose 12% YoY to ₹18,155 crore.
Net interest income up 5% to ₹31,438 crore.
Red Flags: Provisions surged 455% to ₹14,441 crore; gross NPAs edged up to 1.40% (vs 1.33% YoY).
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The dual capital return move – unprecedented in 30 years – signals confidence amid challenges. While profits grew, asset quality stress emerged: gross NPAs hit ₹37,040 crore, and soaring provisions indicate cautious risk management. Shares closed 1.47% lower at ₹1,957 ahead of the announcement.
Analysts view the bonus/dividend as a strategic nod to retail investors but note operational headwinds. The NPA creep and provision spike may pressure near-term margins, even as the bank leverages its scale in a competitive lending landscape.
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Quote:
"These shareholder rewards are a masterstroke for loyalty, yet the provision tsunami can’t be ignored. Execution on asset quality is now critical."
– Banking Sector Analyst, ET Now
At a Glance:
| Event | Key Date/Figure |
|---|---|
| Bonus Record Date | August 27, 2025 |
| Dividend Record Date | July 25, 2025 |
| Dividend Payout | ₹5/share (₹3,834 crore total) |
| Q1 Gross NPA | ₹37,040 crore (+12% YoY) |
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