HDFC Bank Reports Strong Q1 Earnings with Special Dividend and Bonus Issue

HDFC Bank Ltd. (NYSE: HDB) posted a 12.2% rise in Q1 net profit to ₹181.55 billion (~$2.11B), driven by higher interest income and treasury gains. Net interest income climbed 5.4% YoY to ₹314.38 billion, while other income doubled to ₹217.29 billion on trading and fee-based revenue strength. Provisions for bad loans surged fivefold to ₹144 billion, though the bank emphasized these were precautionary countercyclical buffers.

The board approved a Rs 5 per share special dividend—its first since 2019—with a July 25 record date and August 11 payout. A 1:1 bonus share issue further signals confidence in capital adequacy. Despite a 6.7% loan growth in a slowing market, HDFC closed at $75.28 on July 18, reflecting investor Optimism about its fortified balance sheet and revenue diversification.