HDFC Bank’s decision to declare a ₹22 dividend per share marks a significant milestone
India’s largest private sector lender, HDFC Bank, has officially announced its final dividend for the financial year 2024–25. The bank declared a ₹22 per equity share dividend for its shareholders. This move comes after a strong financial performance in the past year and reflects the bank’s continued focus on rewarding its investors.
The bank has also set a record date of June 27, 2025, to determine which shareholders are eligible to receive the dividend. This announcement is important for investors, especially those who are planning to buy or sell HDFC Bank shares around this date.
What Is the Record Date?
The record date is the date by which an investor must be listed as a shareholder in the company’s records to receive the declared dividend. For HDFC Bank, this date is Friday, June 27, 2025.
Only those who hold HDFC Bank shares in their account at the end of trading on this date will be eligible for the ₹22 dividend per share. If shares are bought after this date, the buyer will not be eligible for the current dividend.
Understanding the Ex-Dividend Date
To receive the dividend, shares must be purchased before the ex-dividend date. In India, the stock market follows a T+1 settlement system, meaning the shares bought today are credited to the demat account the next day.
So, if the record date is June 27, then the ex-dividend date will also fall on June 27. This means investors must buy the shares no later than June 26 to ensure the shares are settled in their account by June 27.
Buying shares on June 27 or later would mean missing out on the dividend because the shares will not be registered in the investor’s name in time.
Dividend Approval at AGM
The dividend is not paid immediately after the announcement. It must first be approved by the shareholders of the company during the Annual General Meeting (AGM). HDFC Bank’s 31st AGM is scheduled for August 8, 2025, and it will be held virtually through video conferencing.
Once the dividend is approved at the AGM, the bank will begin the process of distributing the dividend to eligible shareholders.
When Will the Dividend Be Paid?
If approved, the dividend payment will be credited to shareholders’ bank accounts on or after August 11, 2025. This will be done electronically for those holding shares in demat form, while physical shareholders may receive cheques or demand drafts, depending on their bank and KYC compliance.
Tax Deducted at Source (TDS)
Like all dividend payments in India, this dividend will be subject to Tax Deducted at Source (TDS) as per income tax laws. TDS will be deducted at a standard rate unless the shareholder provides valid documents for a lower tax rate or exemption.
Shareholders who want to avoid higher tax deduction must submit proper documentation, such as:
A declaration of lower income (for senior citizens)
Form 15G or 15H
Tax residency certificates (for NRIs)
PAN and KYC details
These documents must be submitted by July 2, 2025, on the bank’s registrar portal or through their demat service provider.
Importance of Updating Bank and KYC Details
To receive the dividend smoothly and on time, shareholders must ensure their bank account and KYC details are correct and updated.
Shareholders holding shares in demat form should contact their depository participant (DP) to verify and update information.
Shareholders with physical share certificates must submit Form ISR-1 and other necessary documents to the bank’s registrar and transfer agent.
Failure to update these details may delay the dividend credit or result in the issuance of physical cheques.
HDFC Bank’s Financial Performance
HDFC Bank’s decision to declare such a high dividend follows a solid financial year. For the quarter ending March 2025:
The bank reported a net profit of ₹17,616 crore, which was a 6.7% increase from the same quarter in the previous year.
Net interest income rose by 10%, showing strong core banking performance.
Provisions for bad loans dropped by 76%, which indicates an improvement in asset quality.
The bank’s full-year profit after tax was ₹70,790 crore, and earnings per share (EPS) stood at ₹92.8.
This strong performance allowed the bank to increase its dividend payout to the highest level in its history.
Historical Dividend Trend
HDFC Bank has maintained a consistent record of rewarding shareholders through annual dividends. Here’s how the dividend has grown in recent years:
FY22: ₹15.50 per share
FY23: ₹19.00 per share
FY24: ₹19.50 per share
FY25: ₹22.00 per share
This year’s dividend represents the largest single-year dividend declared by HDFC Bank since its inception.
Total Dividend Payout Value
The ₹22 per share dividend, when applied to the bank’s large number of outstanding shares, results in a total payout of over ₹16,800 crore. This makes it one of the largest dividend disbursements by any Indian bank in recent times.
This high payout reflects the bank’s strong balance sheet, profitability, and confidence in its continued growth.
Impact on Share Price
When a stock trades ex-dividend, its price typically drops by roughly the dividend amount. This is because new buyers will not receive the declared dividend, and the market adjusts the price accordingly.
Investors looking to benefit from the dividend must also consider this price adjustment while planning their trades.
Broader Market Context
HDFC Bank is not the only company announcing dividends during this period. On the same record date of June 27, over 18 other Indian companies are also going ex-dividend. These include well-known firms from various sectors such as pharmaceuticals, finance, and consumer goods.
This period has become one of the busiest dividend seasons on the Indian stock exchange in recent years.
Summary for Shareholders
To be eligible for the ₹22 dividend:
Shares must be bought on or before June 26, 2025.
The record date is June 27, 2025.
The ex-dividend date is also June 27, 2025.
Shareholders must ensure that bank and KYC details are updated.
TDS-related documents should be submitted before July 2, 2025.
Dividend payment is expected on or after August 11, 2025, pending AGM approval on August 8, 2025.
HDFC Bank’s decision to declare a ₹22 dividend per share marks a significant milestone for both the bank and its shareholders. It highlights the institution’s financial strength, solid governance, and commitment to delivering long-term value to its investors. As the record date approaches, investors are advised to take note of the key dates and ensure all documentation is complete for a hassle-free dividend experience.
