Bonus Boost

With growing revenues but sluggish margin growth in QI, HDFC Bank announces first ever bonus to spur investor confidence

- By SALIL PANCHAL

THE BOARD OF HDFC BANK, India's largest private sector lender, on July 19 approved a bonus share issue—for the first time ever—in a 1:1 ratio, while announcing its June-ended Q1FY26 earnings data. This is seen as a move to boost retail investor and shareholders' confidence in the bank's stock, particularly considering it has remained sluggish over the past year. HDFC Bank will now allot one share, at no additional cost, to investors for every share they hold as on the record date set at August 27.

For the past near 20 years, HDFC Bank has been one of the outperforming banking stocks in the ecosystem. Even with change in the top leadership—Sashidhar Jagdishan took charge as CEO after veteran Managing Director and CEO Aditya Puri retired—and post the merger of the bank with HDFC, the stock was languishing and in a consolidation phase over the past 24 months.

In 2025, HDFC Bank shares have been hovering near their all-time high of ₹2,027, having risen just 9.72 percent this year and near 17 percent in the past two years. Prior to the Q1 earnings and bonus shares announcement, the stock had closed on July 18 at ₹1,957.4 on the National Stock Exchange.