HDFC Bank has announced bonus shares in a 1:1 ratio after 12 years. Record date is July 20, 2025. Read on for eligibility, key dates, and shareholding impact.
📢 What Happened?
HDFC Bank surprised shareholders by announcing a 1:1 bonus issue, its first since 2011. That means for every 1 share held, investors will receive 1 additional share free.
The announcement comes amid robust quarterly performance and improved capital adequacy following the merger with HDFC Ltd.
📅 Key Dates
- Bonus Ratio: 1:1
- Record Date: 20 July 2025
- Ex-Bonus Date: 19 July 2025 (tentative based on T+1 settlement)
- Board Approval: Already approved in AGM held this week
- Listing of Bonus Shares: Expected around end of July
📈 Why Did HDFC Announce Bonus Shares?
- Boost retail participation
- Increase liquidity in the stock
- Celebrate 12 years of consistent growth
- Maintain investor goodwill post-HDFC Ltd merger
According to insiders, the bank’s financial strength post-merger, with strong capital buffers and profit growth, gave it room to offer this shareholder reward.
What Should Investors Do?
✅ If You Hold HDFC Bank Shares:
- Hold till record date (20 July) to get bonus
- Shares bought on or before 18 July will be eligible
- You’ll receive the bonus shares automatically in your Demat account
❌ If You Sell Before Record Date:
- You won’t receive bonus shares even if you held them earlier
📊 Share Price Impact & Bonus Example
- Suppose HDFC Bank share price is ₹1,800 on 18 July 2025.
- On 19 July (Ex-date), price will adjust to approx. ₹900 (1:1 bonus).
- You will now hold 2 shares instead of 1, and total value remains ₹1,800.
- ✔ No change in value, just more liquidity and improved affordability.
📌 Bonus Shares Taxation
- ✅ No tax on receiving bonus shares.
- ⚠️ Capital Gains Tax applies only when you sell.
- 🧾 Cost of acquisition for bonus shares = ₹0, so entire sale price is taxable under capital gains
🧠 Bonus History Section:
🕰️ HDFC Bank Bonus Share History: Timeline & Ratios
HDFC Bank has a solid track record of rewarding shareholders through bonus issues. Here’s a quick look at its bonus share history:
| 📅 Year | 🧾 Bonus Ratio | 🔁 Frequency | Notes |
|---|---|---|---|
| 2000 | 1:2 (1 bonus for every 2 shares) | First | Strong early growth phase |
| 2001 | 1:2 | Second consecutive year | Retail-focused expansion |
| 2005 | 1:1 | After 4 years | Reflects profit surge |
| 2011 | 1:1 | Last bonus before 2025 | Post-2008 recovery impact |
| 2025 | 1:1 | After 14 years | First bonus after merger with HDFC Ltd |
🔎 This makes the 2025 bonus issue highly significant, marking a return to shareholder rewards after a long 14-year gap.
🧠 Should You Buy Before the Record Date?
Only if you’re bullish on HDFC Bank long-term. Bonus shares don’t change fundamentals—just split ownership structure. Evaluate based on:
- HDFC Bank’s strong quarterly results
- Lending momentum post-merger
- Stable asset quality
❓FAQs
Q1. What is the bonus share ratio by HDFC Bank?
👉 1:1 (One bonus share for every one share held)
Q2. What is HDFC Bank’s bonus share record date?
👉 20 July 2025
Q3. Will share price drop after bonus issue?
👉 Yes, it will adjust proportionally. But total investment value remains unchanged.
Q4. Do I need to do anything to get bonus shares?
👉 No action needed. Just hold shares in your Demat account till record date.
Q5. When will bonus shares be credited?
👉 Typically within 7–15 days of record date (likely by end-July)
⚠️ Disclaimer
This content is for informational purposes only. Please consult a financial advisor before making any investment decisions.
