HDFC Bank bonus issue today: Share price impact, record date, history & more

HDFC Bank, India’s most valuable lender by market capitalisation, is in the spotlight today as it turns ex-bonus on August 26 for its much-awaited 1:1 issue. The stock had closed at Rs 1,964.50 on Monday, but as markets open this morning, the share price will adjust in the same ratio. On some trading apps, this might even look like a steep 50 per cent fall, but investors need not panic. Bonus shares are being issued proportionately. For HDFC Bank, it is one for every one held and there is no dilution of equity.

For HDFC Bank’s 36 lakh retail investors, as well as 698 mutual fund schemes, insurers such as LIC, foreign investors like Vanguard and the Government of Singapore, and even over 32,000 NRIs, the move promises higher liquidity on the counter.

The record date to qualify for the bonus shares is set for Wednesday, August 27. Any investor holding the stock on that day will be eligible.

Brokerages remain upbeat on the bank. JM Financial has highlighted strong loan growth across segments, with deposit momentum likely to improve the credit-deposit ratio towards 87–90 per cent. It also expects margins to benefit from the June rate cut and credit costs to normalise over time. Kotak has an ‘Add’ rating, while Motilal Oswal has reiterated its ‘Buy’ call, saying loan growth should broadly match the system in FY26 and outpace it in FY27, supported by demand from MSMEs and rural markets.

HDFC Bank’s move comes in a busy year for bonus issues. More than 70 companies have gone ex-bonus so far in 2025. Big names like Nestle India, Bajaj Finance (4:1), V-Mart Retail (3:1) and BSE (2:1) have already rewarded shareholders, while Ashok Leyland and Container Corporation of India featured among July’s bonus announcements.

The banking sector too has a history of rewarding investors this way, with ICICI Bank (2017), Kotak Mahindra Bank (2015), Federal Bank (2015) and Karnataka Bank (2020) among the notables. More recently, AU Small Finance Bank did a 1:1 issue in 2022.

Interestingly, HDFC Bank is not alone today. Karur Vysya Bank also turns ex-bonus, offering shareholders one bonus share for every five held.