HDFC Bank Shares in Focus as Stock Trades Ex-Bonus

On Tuesday, the HDFC Bank shares are trading ex-bonus for the first time today, marking a major milestone in the stock's corporate history as India’s largest private lender officially implements its inaugural 1:1 bonus share issue. The stock price has adjusted accordingly from the morning session, reflecting the doubled number of shares in investors’ demat accounts, while the overall value of holdings remains unchanged. This bonus issue, ratified by the bank’s board in July 2025, entitles eligible shareholders to receive one additional share for every fully paid-up equity share they held as of the record date dated August 27, 2025. 

The bonus shares are expected to be credited to demat accounts by August 29, 2025, and are available for trading from the next market session. The move is positioned as both a reward for long-term investors and a strategic signal of HDFC Bank's confidence in its growth trajectory, especially as more than 36 lakh retail shareholders and significant foreign institutional investors stand to benefit from this corporate action.

The ex-bonus adjustment means the share price was halved at the open to reflect the fresh 1:1 bonus entitlement. The scrip last closed at Rs 1,964.10 per share on NSE before the adjustment. While the nominal share price comes down post-bonus, shareholder value remains intact, and the bank’s issued, subscribed, and paid-up capital is set to double.

On the back of this historic corporate action are HDFC Bank’s Q1FY26 financial results, which, though mixed, broadly reaffirm its operational strength. The bank reported a consolidated total income of Rs 1,33,055 crore, up 13.7 percent year-on-year. The net profit (PAT) for the quarter stood at Rs 17,090 crore, a marginal 0.6 percent drop YoY, impacted mainly by sharply higher provisions up 10.9 percent QoQ and a 387 percent YoY. Asset quality remained largely stable, with gross NPAs inching up modestly to 1.40 percent. Net Interest income rose 5.4 percent YoY to Rs 77,470 crore, with interest expenses pacing up 6.6 percent YoY to Rs 46,032 crore.

Brokerage and management commentary remains constructive despite the Q1 margin compression and elevated provisions. Jefferies highlighted the bank's robust operational momentum and strong outlook for loan growth, noting Q1FY26 profit of Rs 18,200 crore (up 12 percent YoY) as ahead of expectations, and reaffirmed HDFC Bank as a sector top pick. Goldman Sachs and CLSA have a positive stance, focusing on expected improvement in loan growth and profitability as merger synergies are realized and NIMs stabilize in the second half of FY26. CLSA specifically called out HDFC Bank’s surprising resilience on NIM moderation, flat opex, and strong deposit growth.