A Detailed Look at HDFC Bank’s First-Ever Perquisite Issue, Placed Within Its Bottommost Fiscal and Marketable Terrain
What Happened?
HDFC Bank’s first-ever 1:1 bonus issue and a special ₹5 dividend mark
On July 19, 2025, HDFC Bank blazoned its miss perquisite share issue in a 1:1 rate, meaning shareholders will admit one fresh completely paid share for each share they hold as on the record date. Contemporaneously, the bank declared a special interim tip of ₹5 per share, satisfying shareholders with direct cash payouts.
Vital Dates
- Record Date (Perquisite Shares): August 27, 2025
- Anticipated Allotment Date: On or before September 18, 2025
- Record Date (Tip): July 25, 2025
- Tip Payment Date: August 11, 2025
Fiscal Results & Strategic Rationale
In Q1 FY26 (April – June 2025), HDFC Bank posted a 12 time‑on‑time net profit growth, earning ₹18,155 crore from both net interest and strong non‑interest income. This marked the bank’s confidence in vital fundamentals following the junction with its parent, HDFC Ltd., and robust earnings from the IPO of its attachment HDB Financial Services.
Issuing perquisite shares and offering a special tip are seen as way to enhance retail participation, meliorate liquidity, and gesture a shareholder-friendly approach.
Why Perquisite Shares Matter
The 1:1 perquisite rate effectively doubles shareholders’ goods, though the request capitalization remains constant. The share price adjusts consequently on the mate‑date. This move can also make the stock more affordable to small investors, potentially enhancing volume and liquidity.
Unlike a stock split, perquisite shares retain the face value (₹1) and EPS gets weakened, but shareholders’ overall value remains unchanged.
Who Benefits?
The bank has over 36 lakh retail investors holding shares up to ₹2 lakh face value, along with cooperative finances, insurance companies, and Foreign Portfolio Investors including LIC, Vanguard, and Singapore’s independent wealth fund. The move is anticipated to boost retail sentiment, making the share more accessible ahead of gleeful demand cycles.
Summary Table
| Content | Details |
|---|---|
| Perquisite Issue Rate | 1:1 (one perquisite share per share held) |
| Perquisite Record Date | August 27, 2025 |
| Perquisite Allotment by | On or before September 18, 2025 |
| Special Tip | ₹5 per share (500%) |
| Tip Record Date | July 25, 2025 |
| Tip Payment Date | August 11, 2025 |
| Q1 FY26 Net Profit | ₹18,155 crore (↑12%) |
| Strategic Aim | Boost liquidity, retail participation, price shareholders |
Investor Takeaway
No cash exodus is demanded from shareholders to admit the perquisite shares. The shares are issued from free reserves. A 650‑850 base point capital buffer (CARA 19.9) gives the bank fiscal harshness.
EPS is likely to be weakened (since the share count doubles), but total holding value remains unchanged, and immediate tip provides cash benefit.
Final Perspective
HDFC Bank’s first‑ever 1:1 perquisite issue and a special ₹5 tip mark a bold move in its marketable strategy. Coming on the heels of strong quotidian results and following a major junction and IPO, the double measures are easily designed to award being investors, enhance stock vacuity, and maintain HDFC Bank’s character as a retail-friendly, growth‑informed fiscal mammoth.