HDFC Bank, India’s largest private sector lender, has announced a landmark 1:1 bonus issue for the first time in its history. This means shareholders will receive one fully paid-up equity share of face value Rs 1 for every share they already hold. The record date for the bonus issue has been set as August 27, 2025.

This marks a significant milestone for the bank, signaling strong confidence in its financial position and a move aimed at enhancing liquidity and retail participation in its stock.

Special Interim Dividend of Rs 5 Per Share

Q1FY26 Results: Profit and Income Growth
The announcements came in the backdrop of HDFC Bank’s Q1FY26 earnings. The bank reported a 12% year-on-year increase in standalone net profit, rising to Rs 18,155 crore from Rs 16,175 crore in the same period last year.

Total interest income also grew 6% year-on-year to Rs 77,470 crore, compared to Rs 73,033 crore in Q1FY25. Net interest income (NII) for the quarter stood at Rs 31,440 crore, showing a 5.4% growth over Rs 29,840 crore in the previous year’s corresponding quarter.

Margins and Expenses
The bank’s core net interest margin (NIM) on total assets came in at 3.35%, slightly lower than 3.46% recorded in the March quarter. This dip reflects the slower pace of deposit repricing in comparison to asset yields.

Operating expenses rose to Rs 17,430 crore, up from Rs 16,620 crore in Q1FY25. The cost-to-income ratio, excluding transaction gains, was reported at 39.6% during the quarter.

Conclusion
HDFC Bank’s first-ever bonus issue and generous dividend reflect its robust financial health and commitment to rewarding shareholders. Coupled with steady profit growth and healthy interest income, the bank remains well-positioned in India’s evolving financial landscape. The twin announcements have generated positive sentiment in the market, reinforcing investor confidence in the bank’s future prospects.