HDFC Bank Stock Set to Surge Ahead of Bonus Issue Meeting

HDFC Bank stock is expected to be in focus ahead of its Q1 results announcement and a meeting to consider a special dividend and first-ever bonus share issue. The stock has surged 25% from its calendar year low and currently trades near lifetime highs, with the NSE intra-day high at ₹2,023 on Wednesday.

Title: HDFC Bank Stock in Focus Ahead of Q1 Results and Corporate Actions

HDFC Bank Ltd., India's largest private sector lender, is expected to be in the spotlight as it prepares to announce its Q1 results and considers a special dividend and its first-ever bonus share issue. The stock has surged 25% from its calendar year low and currently trades near lifetime highs, with the NSE intra-day high at ₹2,023 on Wednesday.

The bank informed the exchanges on Wednesday, July 16, that it will be considering a bonus issue of shares during its board meeting on Saturday, July 19. This will be the first ever issue of bonus shares that HDFC Bank will be considering for its shareholders. Along with the bonus issue of shares, HDFC Bank will also be considering a special dividend during the board meeting [1].

The stock price of HDFC Bank gained 1.3% on Wednesday after the announcement, trading at ₹2,021.90 on the BSE [2]. The stock is currently trading close to its record high of ₹2,027.90, which was touched on June 26, 2025. In the past six months, HDFC Bank has outperformed the market by surging 22% compared to the 7% rise in the BSE Sensex [2].

HDFC Bank is expected to report a net profit of Rs. 16,422.2 crore for the first quarter of 2025-26, according to Prabhudas Lilladher's earnings estimates. This represents a 1.5% year-on-year increase and a 2.9% quarter-on-quarter decrease [3]. The bank's net interest income (NII) is expected to increase by 5.3% year-on-year, and its pre-provision operating profit (PPOP) is likely to rise by 4.2% year-on-year [3].

The bank's strong performance is driven by robust deposits growth in the June quarter. Deposits increased by 16.2% year-on-year and 1.8% sequentially to ₹27.64 lakh crore, while advances grew by 6.7% year-on-year to ₹26.53 lakh crore [1].

HDFC Bank's business outlook remains positive, with the bank confident about the long-term housing demand in India. The Reserve Bank of India (RBI) anticipates GDP growth to be 6.5% in FY26, supported by domestic factors such as rural consumption demand, moderation in inflation, tax cuts, and interest rate cuts [2].

In conclusion, HDFC Bank is poised to report strong Q1 results and consider significant corporate actions that could further boost its stock price. Investors are advised to keep a close eye on the bank's performance and the upcoming board meeting.

References:
[1] https://www.cnbctv18.com/market/hdfc-bank-share-price-bonus-issue-board-meet-july-19-record-date-q1-results-stock-split-returns-19637818.htm
[2] https://www.business-standard.com/markets/news/hdfc-bank-stock-rises-1-as-board-mulls-bonus-special-dividend-on-july-19-125071600198_1.html
[3] https://www.moneycontrol.com/news/business/earnings/hdfc-bank-q1-net-profit-seen-up-1-5-yoy-to-rs-16-422-2-cr-prabhudas-lilladher-13280528.html