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HDFC Bank bonus issue: The board of directors of HDFC Bank has declared the issuance of bonus shares in a 1:1 ratio to its eligible shareholders. HDFC Bank's bonus issue record date is fixed on 27 August 2025. As August 27, 2025, is a stock market holiday, HDFC Bank shares will trade ex-date for bonus shares on 26 August 2025, i.e. on Tuesday next week. So, those HDFC Bank shareholders holding HDFC Bank shares after the market close on Tuesday next week will be eligible to issue an equal number of HDFC Bank shares available in their respective Demat Accounts.

However, there is a catch for HDFC Bank shareholders who are eligible for bonus issues. According to the income tax rules, bonus shares come under the purview of income tax (both short-term capital gain and long-term capital gain). A bonus share beneficiary must pay 20% short-term capital gain (STCG) if they sell the bonus shares within one year of the share allotment date. The entire sale value will be considered the investor's income, and a 20% STCG will be levied on the whole bonus share sale value. Similarly, if the bonus share beneficiary sells bonus shares after the one-year bonus shares allotment date, a 12.50% LTCG will be levied on the net sales value above ₹1.25 lakh. So, a marginal retail investor should only go for the HDFC Bank bonus issue benefit if they want to hold HDFC Bank shares for over a year.

On how the HDFC Bank bonus issue will be taxed, Mumbai-based tax and investment expert Balwant Jain said, "For the potential HDFC Bank bonus issue beneficiary, the cost of bonus shares would be zero. If the upcoming HDFC Bank bonus shares are sold within one year of issuance, then a flat 20% STCG will be levied on the bonus shares. If bonus shares are sold after holding them for more than one year, then in that case, the bonus share beneficiary will have to pay 12.50% tax on income over ₹1.25 lakh that the shareholder has earned from the date of issuance of bonus shares."

Balwant Jain said that on most occasions, a marginal retail investor need not pay LTCG on their bonus shares as their portfolio is so small that it does not exceed the ₹1.25 lakh limit. He said that marginal retail investors should go for the bonus share benefit if they have a perspective of more than one year on HDFC Bank shares.

Highlighting the fundamentals of HDFC Bank, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "In the near term, the stock may benefit from positive sentiment ahead of the August 27 record date. Over the next 12 months, while NIM compression and slower corporate loan growth could weigh, HDFC Bank’s resilient balance sheet, strong deposit franchise and prudent provisioning make it a safe compounding story. It has reported a healthy Q1 FY26 performance with PAT up 12.2% YoY despite making large discretionary provisions of over ₹10,000 crore to strengthen its balance sheet. Net interest income grew 5.4% to ₹31,440 crore, though core NIM moderated 3.35% due to deposit repricing pressures."

Seema Srivastava, who is a certified Chartered Accountant (CA) as well, said that loan growth was steady at 6.7% YoY, led by retail (+8.1%) and SME (+17.1%), while corporate loans grew modestly at 1.7%. Asset quality remains best-in-class with gross NPA at 1.40% and net NPA at 0.47%, supported by robust provisioning buffers. Capital adequacy is strong with a CAR of 19.9%, well above regulatory requirements, providing ample headroom for future growth.

"On the shareholder rewards front, the bank declared a 1:1 bonus share issue and a special dividend of ₹5 per share, reflecting management’s confidence," Seema Srivastava of SMC Global Securities said.

Speaking on the HDFC Bank share price chart pattern, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, "HDFC Bank shares have been witnessing a strong uptrend after giving a breakout above the key level of ₹1850 per share. The stock is expected to maintain its positive momentum if it sustains above this crucial support zone. In the near to medium term, the uptrend may continue, with the potential to rally towards the ₹2,050 to ₹2,100 levels. Hence, investors are advised to hold existing positions and consider buying on dips, keeping a stop loss at ₹1850 to manage risk effectively. On breaking above the ₹2,100 levels, we can expect HDFC Bank shares to touch the ₹2,350 apiece levels. This setup offers a favourable risk–reward opportunity for investors looking for steady gains in the coming months."

In one of its latest exchange filing, HDFC Bank informed exchanges about the bonus shares record date, saying, "This has reference to our intimation dated July 19, 2025, wherein the Board of Directors of HDFC Bank Limited (“Bank”) had approved the issuance of bonus shares in the ratio of 1:1 i.e. 1 equity share for every 1 equity share held by the shareholders as on the record date i.e. August 27, 2025 (“Record Date”) and also increase in the Authorised Share Capital of the Bank and consequential amendment to Memorandum of Association, subject to applicable approvals including from the Members of the Bank. Reference is also drawn to our intimation dated July 22, 2025 wherein we had informed about circulation of the Postal Ballot Notice dated July 19, 2025 to all the Members, seeking their approval for the said matters."

Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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