#HDFCBank Posts Strong Q1 Results, Announces Dividend and 1:1 Bonus Issue

Lucknow :  #HDFCBank, has reported a robust financial performance for the first quarter of the financial year 2025-26. The bank’s net profit surged 12.24% year-on-year, reaching ₹18,155.21 crore in the quarter ended June 30, 2025, as compared to ₹16,174.75 crore during the same period last year.

This strong performance came with a reward for investors as the bank also announced a special interim dividend and a bonus share issue. The board approved a ₹5 per share special dividend and a 1:1 bonus issue, subject to regulatory and shareholder approvals.

The bank's total interest income rose to ₹77,470 crore, marking a 6% growth from ₹73,033 crore in the corresponding quarter last year. Interest expenses also increased by 6.6% to ₹46,032 crore, up from ₹43,196 crore.

HDFC Bank’s net interest income (NII)—the difference between interest earned and interest paid—stood at ₹31,439 crore, registering a 5.4% increase from ₹29,839 crore in Q1 FY25. The standalone NII growth reflected the bank's stable core earnings despite market volatility.

Operating expenses for the quarter grew by 4.9% year-on-year, reaching ₹17,434 crore compared to ₹16,621 crore last year. Of this, ₹6,158 crore was spent on employee-related expenses while ₹11,276 crore accounted for other operational costs.

The bank’s operating revenue stood at ₹35,734 crore for the April-June quarter. Meanwhile, gross advances increased by 6.7% year-on-year to ₹26.53 lakh crore as of June 30, 2025. Total deposits rose 16.2% to ₹27.64 lakh crore during the same period.

However, the CASA (Current Account Savings Account) ratio declined to 33.9% from 38.2% in Q1 FY25, indicating a shift towards fixed deposits amid a higher interest rate environment.

The ₹5 per share special interim dividend will be paid on August 11 to shareholders whose names appear in the records by July 25, 2025. Additionally, the 1:1 bonus issue means that for every share held, investors will receive one bonus share. The record date for the bonus entitlement has been set as August 27, 2025.

With steady earnings growth and shareholder-friendly measures, HDFC Bank continues to reinforce its leadership in the Indian banking sector. The strategic bonus and dividend payouts reflect the bank’s confidence in its financial position and growth trajectory.

Market watchers are now eyeing how these announcements will influence the bank’s stock performance in the upcoming trading sessions. Investors who acquire HDFC Bank shares before August 27 will be eligible for the bonus issue, adding further buying interest in the near term.