HDFC Bank Issues 1550% Dividend For The Financial Year 2021-22: Check Details

The private sector lender HDFC Bank confirmed on Saturday, April 23, 2022 that its Board of Directors has recommended a dividend of Rs. 15.50 per equity share of Re. 1/- each or 1550% for the financial year 2021-22.

The company has informed BSE that "Pursuant to Regulations 30, 42 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time ("the Regulations"), we are pleased to inform that the Board of Directors, at its meeting held today, has recommended a dividend of Rs. 15.50 per equity share of Re. 1/- each fully paid up (i.e.1550 %) out of the net profits for the year ended March 31, 2022, subject to the approval of the shareholders at the ensuing Annual General Meeting ("AGM") of the Bank."

"The record date for determining the eligibility of members entitled to receive dividend on equity shares is Friday, May 13, 2022. Dividend, if approved by the shareholders of the Bank, shall be paid after the AGM to those shareholders, whose names appear in the Bank's Register of Members/ Register of Beneficial Owners maintained by the Depositories viz., National Securities Depository Limited and Central Depository Services (India) Limited as at the close of business hours on Friday, May 13, 2022," the company has informed BSE.

The bank reported a 22.8 per cent year-on-year (YoY) increase in net profit for the March quarter, with a net profit of Rs 10,055.18 crore compared to Rs 8,186.51 crore a year ago. According to the statement, the bank gained 563 branches and 7,167 employees in the March 2022 quarter, and 734 branches and 21,486 employees in the fiscal year 2021-22.

The company's shares closed at Rs 1,353.45 on Friday, down Rs -18.80 (1.37 per cent) from the previous closing of Rs 1374.25. The stock has declined -5.17 per cent in the previous five trading days and -6.05 per cent in the last month. In the previous six months, the stock has fallen -18.19 per cent, and year-to-date (YTD), the stock has fallen -10.81 per cent so far. The stock has dropped -3.52 per cent in the last year. On the BSE, the stock hit a 52-week high of Rs 1,724.30 on October 18, 2021, and a 52-week low of Rs 1,292.00 on March 8, 2022, with the stock now trading at 4.91 per cent near its 52-week low.

Following the release of Q4 results, the brokerage firm Sharekhan has maintained a buy recommendation on the stock with a target price of Rs 1800. "We believe that the bank is on an accelerated growth path with robust advances growth led by retail and commercial segments and better asset quality. Advances are likely to clock a CAGR of ~17% over FY23E to FY25E. The bank's continuous building up of its digital infrastructure and franchise network is likely to bode well for growth going ahead. The stock has under-performed its peers in the past 12 months. However, we believe that the bank now has sufficient drivers in terms of asset quality, reasonable provision buffers and appropriate asset mix to drive sustainable growth going forward. The bank is well capitalized and has the ability to manage asset quality across cycles and deliver superior return ratios and reap opportunities from a revival in the economy going ahead," the brokerage has said.