The board of HDFC Bank on Saturday approved the issue of one bonus share for each share held of the bank of face value ₹1 each. The bank’s board has also recommended a special interim dividend of ₹5 per equity share (500 per cent) for FY26.
These come in the backdrop of the bank clocking a pre-tax net gain of ₹9128.40 crore during the quarter on a standalone basis from the sale of shares of subsidiary HDB Financial Services at its public offer.
“The board has recommended a first-ever bonus share issue in the ratio of 1:1,” Sashidhar Jagdishan, MD and CEO of HDFC Bank, told analysts at the Q1FY26 earnings call on Saturday.
On a standalone basis, the net profit of the bank stood at ₹18,155.21 crore in Q1FY26, up 12.24 per cent from ₹16,174.75 crore in Q1FY25.
Net interest income of the bank grew by 5.4 per cent to ₹31,440 crore during the quarter from ₹29,840 crore in the corresponding period previous year.
While non-interest income grew 104 per cent, driven by mark-to-market and transaction gains, provisions increased by 455 per cent to ₹14,441.63 crore in Q1FY26 from ₹2602.06 crore in Q1FY25.
The bank informed the bourses that it has made a floating provision of ₹9,000 crore and additional
contingent provisions of ₹1,700 crore.
“The bank has considered this as an opportune stage to enhance its floating
provisions, which are not specific to any portfolio, nor meant for any specific anticipated risks, but act as a countercyclical buffer for making the balance sheet more resilient,” HDFC Bank said in a statement.
Gross NPA of the bank during the quarter stood at 1.4 per cent compared to 1.33 per cent in Q1FY25.
On a consolidated basis, the bank reported a marginal decline in net profit to ₹16,258 crore in Q1FY26, down from ₹16,475 crore in Q1FY25.
“Core net interest margin was at 3.35 per cent on total assets (in Q1FY26), reflecting assets repricing faster than
deposits, as against 3.46 per cent for the prior quarter ended March 31, 2025,” the bank said.