HDFC Bank Share Price Drops 50% Amidst Bonus Issue Announcement

HDFC Bank shares fell 50% after announcing a bonus issue in the ratio of 1:1, with a record date of August 27, 2025. The stock fell 1.28% to ₹969.65 per share, despite a 0.70% decline in the BSE Sensex. Analysts expect the stock to test its support levels around ₹945 and resistance at ₹1000. The lender reported a 12.2% Y-o-Y increase in net profit to ₹18,155 crore in Q1FY26, with provisions jumping to ₹14,441 crore.

HDFC Bank shares experienced a significant drop of over 50% on Tuesday, August 26, 2025, after the lender announced a 1:1 bonus issue with a record date of August 27, 2025. The stock opened at ₹979.50, significantly lower than Monday’s close of ₹1,964.10, reflecting the automatic price adjustment mechanism [1].

The bonus issue effectively doubles the number of shares while proportionally reducing the stock price, keeping the overall investment value unchanged for existing shareholders. This marks HDFC Bank’s maiden bonus issue in over three decades of trading history. The bank previously conducted stock splits in 2011 and 2019 [1].

Despite a 0.70% decline in the BSE Sensex, HDFC Bank’s stock fell 1.28% to ₹969.65 per share. Analysts expect the stock to test its support levels around ₹945 and resistance at ₹1000 [3]. The lender reported a 12.2% year-on-year (Y-o-Y) increase in net profit to ₹18,155 crore in Q1FY26, with provisions jumping to ₹14,441 crore [3].

The stock’s performance underscores the impact of the bonus issue, which is often seen as a sign of management’s confidence in the company’s growth trajectory and financial strength [2]. The announcement comes on the heels of HDFC Bank’s Q1FY26 earnings, where the lender reported a 12% year-on-year growth in standalone net profit to Rs 18,155 crore [2].

References
[1] https://www.thehindubusinessline.com/markets/stock-markets/hdfc-bank-shares-drop-130-after-11-bonus-issue-adjustment/article69977961.ece
[2] https://economictimes.indiatimes.com/markets/stocks/news/hdfc-bank-shares-in-focus-as-stock-to-trade-ex-bonus-for-11-issue/articleshow/123514532.cms?from=mdr
[3] https://www.business-standard.com/markets/news/down-50pc-whats-behind-the-drop-in-hdfc-bank-share-price-today-125082600312_1.html