Ex-Bonus From Today: Latest Update on HDFC Bank Share

HDFC Bank has just made history. For the first time since its launch in 1994, India’s largest private lender has rewarded investors with a 1:1 bonus issue. This means for every single share we already hold, we now get one more, completely free. The stock turned ex-bonus on August 26, 2025, a day earlier than the record date, because the markets remain shut on August 27 for a holiday.

What impact does this have on us holding the shares? On paper, the share price looked like it had dropped by almost half. In reality, nothing was lost. The price was only adjusted to reflect the extra shares in circulation. Our overall holding value stays the same, while the number of shares in our portfolio doubles.

This bonus issue comes alongside strong quarterly results. HDFC Bank’s net profit for Q1 FY26 rose 12% year-on-year to ₹18,155 crore, with steady loan growth and a ₹5 per share special dividend announced as well. This step shows a strong belief in the bank’s long-term expansion.

We will break down what the ex-bonus means, how it changes shareholding, the short-term stock reaction, and what it could mean for the future of HDFC Bank.

What Does Ex-Bonus Mean?

Ex-bonus means the stock starts trading without bonus entitlement. On the ex-bonus day, the share price adjusts, often halving with a 1:1 bonus, so our total value doesn’t change.

Details of HDFC Bank’s Bonus Issue

Back on July 19, 2025, the board approved the bonus issue at a 1:1 ratio. To qualify, we needed to hold shares by August 26, the day before the record date, cause to T+1 settlement rules. Shares are slated to be credited around August 28–29.

Market Reaction and Share Price Movement

On August 26, the stock looked to plunge by 50–62%. That decline wasn’t genuine but an adjustment linked to the bonus shares. Our holding value stayed the same, but shares doubled in number. Some apps showed unadjusted prices, creating confusion.

Impact on Investors

As investors, our shares doubled, though the price halved. Our total value stays intact. The move boosts liquidity and access, especially for retail investors.

Fundamentals of HDFC Bank Post-Bonus

The fundamentals haven’t changed. In Q1 FY26, the bank’s net profit rose 12% YoY to ₹18,155 crore, and net interest income (NII) grew around 5–5.4%. A special payout of ₹5 per share will also be given to shareholders. Loan book grew nearly 6.7%, with strong retail (8.1%) and SME (17.1%) growth. HDFC Bank maintains strong asset quality, reporting gross NPA of 1.4% and net NPA of 0.47%, with healthy capital adequacy.

Broader Sector Impact

The move distinguishes HDFC Bank from other banks in the sector. Earlier this year, several BSE500 companies announced bonuses; HDF Bank joining them signals strength. It may inspire investors to hold onto or buy more banking stocks.

Tax and Holding Considerations

We must remember that tax rules apply. If we sell bonus shares within one year, 20% short-term capital gains (STCG) kicks in. After one year, 12.5% long-term capital gains (LTCG) apply on gains over ₹1.25 lakh. For many of us, small portfolios may stay below that.

Risks and Challenges to Watch

Though this is a strong signal, we must stay cautious. Interest rate pressure could affect margins (NIM compression), and lower corporate loan growth may emerge. Still, the bank’s sturdy balance sheet, prudent provisioning, and strong deposits make it a resilient growth story.

Conclusion

HDFC Bank’s ex-bonus move shows confidence. The share count doubled, the price adjusted, but our wealth remained steady. With robust quarterly results, it looks solid for the long term. If we’re seeking stability and trust in a top-tier bank, HDFC Bank is worth a closer look. Let’s hold steady and watch how things unfold.

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This content is for informational purposes only and is not financial advice. Always conduct your research.