HDFC Bank, India's largest private sector lender, has announced its first-ever bonus issue of shares in the ratio of 1:1. This corporate action means that shareholders will receive one additional share for every share they currently hold. The bonus shares will have a face value of Re 1 each.

The record date, which determines the eligibility of shareholders for the bonus issue, is set for August 27, 2025. However, since August 27 is a stock market holiday, the shares will trade ex-date on August 26, 2025. This means that investors who want to be eligible for the bonus shares must purchase HDFC Bank shares before the end of the trading day on August 25, 2025. Those holding the stock after market close on August 26, 2025, will be entitled to receive an equal number of bonus shares in their Demat accounts. According to a previous regulatory filing, the allotment of bonus shares is expected to occur on or before September 18, 2025. These bonus shares will be available for trading from the subsequent session.

The issuance of bonus shares will increase HDFC Bank's issued, subscribed, and paid-up capital from Rs 766.79 crore to Rs 1,533.58 crore. While the number of shares held by investors will double, the overall value of their investment will remain the same. The market capitalization of HDFC Bank is Rs. 15,08,346.39 crore.

Bonus issues are often viewed by market participants as a sign of confidence from the company's management, reflecting the bank's ability to reward shareholders while maintaining strong financial health.

HDFC Bank has a history of rewarding its shareholders. The bank announced its first stock split in 2011 in a 5:1 ratio, where each share with a face value of Rs 10 was split into five shares of Rs 2 each. A second stock split occurred in 2019, with a 2:1 ratio, dividing each share with a face value of Rs 2 into two shares of Re 1 each. In addition to stock splits, HDFC Bank has also declared dividends in the past.

The announcement of the bonus issue comes after HDFC Bank reported a 12% year-on-year growth in standalone net profit for Q1FY26, which rose to Rs 18,155 crore, compared to Rs 16,175 crore in the same period last year. The bank's interest income during the quarter climbed to Rs 77,470 crore, marking a 6% increase over the Rs 73,033 crore reported in the corresponding quarter of FY25. Net interest income (NII) also expanded by 5.4% year-on-year to Rs 31,440 crore, compared to Rs 29,840 crore in Q1FY25.