1:1 Bonus Issue: Record Date Set for HDFC Bank Bonus Share & Special Dividend; ADS Holders to Benefit

HDFC Bank, India's largest private sector bank, has announced its first-ever 1:1 bonus equity share issue, along with a Special Interim Dividend of Rs 5 per share for FY 2025-26. The bonus issue means existing shareholders will receive one additional share for every share they hold, effectively doubling their stake-subject to approvals and effective recording.

HDFC Bank Bonus Issue and Dividend Record Date

The record date to determine eligible shareholders for this bonus is set for August 27, 2025. The bonus issue is subject to necessary approvals, including from the bank's shareholders.

In an official filing, the bank stated, "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), subject to applicable approvals including from the Members of the Bank."

In addition, the bank had set Friday (August 25, 2025) as the record date for the Special Interim Dividend, which will be disbursed at Rs 5 per fully paid equity share (face value of Rs 1). The dividend will be credited to eligible shareholders on Monday, August 11, 2025.

What Does It Mean for HDFC Bank's ADS?

For those holding HDFC Bank's American Depositary Shares (ADS), the impact is equally beneficial. The bank has confirmed that the ADS conversion ratio-one ADS representing three equity shares will remain unchanged. As a result, ADS holders will receive their proportionate bonus shares, ensuring parity and fair value compared to equity shareholders in India.

HDFC Bank's ADS, listed on the New York Stock Exchange, will reflect the bonus issue under the existing conversion scheme-1 ADS equals 3 equity shares of Rs 1 each. The bank will instruct its ADS depositary, JP Morgan Chase Bank, N.A., to adjust the total ADS count to mirror the bonus issue in the same 1:1 ratio.