India's Largest Private Sector Bank By Assets: Ex-Date In 3 Days For Highest-Ever Dividend; Buy?

As of January 2024, HDFC Bank ranked sixth internationally in terms of market capitalization and was the largest private sector bank in India in terms of assets. On May 10th, the stock, which is now trading at 2.94 times its book value, will go ex-dividend in order to facilitate the largest payout ever announced by the board of directors during FY24. The BSE saw a 0.27% rise in HDFC Bank shares on Monday, closing at Rs 1522.80 a share.

HDFC Bank Dividend

Subject to the approval of the shareholders at the bank's upcoming Annual General Meeting ("AGM"), the Board of Directors has recommended a dividend of Rs. 19.50 per equity share of Re. 1/- each fully paid up, or 1950%, out of the net profit for the year ending March 31, 2024. The record date for determining the eligibility of members entitled to receive the above-said dividend is Friday, May 10, 2024. If the bank's shareholders approve, the dividend will be paid to shareholders whose names are on the register of beneficiaries or members of the bank kept by the depositories, Central Depository Services (India) Limited and National Securities Depository Limited, as of Friday, May 10, 2024, at the close of business hours.

HDFC Bank Latest News

In a letter dated May 2, 2024, the Reserve Bank of India (RBI) authorised Mr. Atanu Chakraborty's reappointment as the bank's part-time chairman. The new tenure will run from May 5, 2024, to May 4, 2027 (inclusive). At present, Mr. Atanu Chakraborty works part-time as HDFC Bank Limited's chairman and independent director. He worked for the Indian government for thirty-five (35) years as a Gujarat cadre member of the Indian Administrative Service (IAS).

HDFC Bank Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "HDFC Bank is currently trading at Rs 1525, exhibiting a sideways movement within the range of 1500 to 1540. If the price closes above the 1560 level, it is anticipated to ascend towards 1600 and 1650 levels. Conversely, 1500 and 1475 are expected to act as immediate support levels. The Relative Strength Index (RSI) stands at 56.48 and is trending upwards, indicating increasing buying momentum from the oversold region. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently underwent a positive crossover from the oversold zone."

"These technical indicators collectively suggest the potential for HDFC Bank to attain a target price of Rs 1650 in the near term. To effectively manage risk, implementing a stop-loss (SL) at Rs 1450 is advisable to protect investments against unforeseen market reversals. In summary, considering the technical analysis and prevailing market conditions, HDFC Bank presents an attractive buying opportunity for those aiming for a Rs 1650 price objective, provided prudent risk management measures are in place," the analyst further predicted.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.