1:1 Bonus Issue On August 26: HDFC Bank Shares Fall 1% As Record Date For Bonus Nears: Buy For Rs 2,400 Target

Mega banking stock HDFC Bank continued to trade volatile on BSE and NSE during the early session of August 22, as investors' focus shifts towards its upcoming 1:1 bonus issue. HDFC Bank is in focus as the record date for the bonus is scheduled on August 26. Ahead of the bonus benefits, brokerages like Jefferies have recommended BUY on HDFC Bank for a target price of Rs 2,400. Currently, the stock traded lower by nearly 1%.

HDFC Bank Share Price:

At the time of writing, HDFC Bank traded at Rs 1,973.90 apiece, down by 0.87% on NSE, with market cap of Rs 15,14,987.03 crore. The stock is near its intraday low of Rs 1,972 apiece.

In the past 5 sessions, the heavyweight stock dropped by around 2.4%. Nonetheless, the stock continues to be up by 11% YTD. In a year, HDFC Bank shares have rallied by 21%.

BUY HDFC Bank Shares Before Bonus?

Global brokerage Jefferies has suggested BUY with target price of Rs 2,400 on HDFC Bank. The positive outlook is due to HDFC Bank's robust deposit mobilisation, better loan-to-deposit ratio (LDR) targets, while merger-related synergies look well-poised.

According to Jefferies, HDFC Bank's asset quality remains stable, indicating a focus on better quality retail and SME loans, which it believes, would support the bank's lending appetite. Jefferies is expecting credit growth to improve to 11% in FY26 in HDFC from 5% growth in FY25.

Also, the global brokerage believes that the US tariffs is a key concern for all banks including HDFC Bank. However, Jefferies does not expect major impact on HDFC Bank because its exposures in SME/export-orientated sectors are to better-rated customers.

Meanwhile, Kotak Institutional Equities has recommended ADD on HDFC Bank for Rs 2,200 fair value after its Q1 results.

HDFC Bank Bonus Issue:

The mega bank has announced its first-ever bonus issue in the ratio of 1:1. This means that the bank will issue 1 (One) equity share of Re. 1/- each for every 1 (One) fully paid-up equity share of Re. 1/- each held by the Members of the Bank as on the Record Date.

The record date and ex-date for the bonus issue are fixed on August 26, 2025.

The bank plans to complete its bonus issue action within 2 (two) months from the date of approval by the Board of Directors, i.e., on or before September 18, 2025.

This will be HDFC Bank's first-ever bonus issue in its history.

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.