MUMBAI: HDFC Bank will consider a proposal to issue bonus shares and declare a special interim dividend during its board meeting on July 19. The agenda comes alongside the review of the bank’s unaudited financial results for the quarter ended June 2025.This would be the bank’s first bonus issue since its formation over three decades ago. Shares closed nearly flat at Rs 1,996 on Wednesday, giving the bank a market cap of Rs 15.2 lakh crore. According to exchange filings, the proposals are in line with regulatory norms and, in the case of the bonus issue, will require shareholder approval.The interim dividend, if approved, will be applicable for financial year 2025-26. The timing aligns with expectations of a strong quarterly performance, following the completed merger with HDFC last year and ongoing efforts to integrate operations.

A bonus issue typically aims to increase the number of outstanding shares and improve liquidity. It often reflects a company’s confidence in its reserves and earnings prospects. It may also help make the stock more accessible to retail investors by lowering the effective share price.The proposed interim dividend would enable the bank to distribute profits in advance of its annual results. Investor interest in the bank’s capital strategy has grown since the merger, as shareholders look for signals on returns and allocation.The bank has closed its trading window for designated employees and their immediate relatives until July 21, in accordance with its internal dealing code. The outcome of the board meeting is likely to influence investor expectations on future distributions and the bank’s broader capital management approach.