HDFC Bank is on a roll today! From its close of Rs.1995.30, the stock opened higher at Rs.2014.20 and rose further to Rs.2021.90, very close to its 52-week high of Rs.2027.40.

The market is celebrating its announcement for first every bonus being considered for which the Board is scheduled to meet on 19th July.

The Board will also announce a special interim dividend for FY26.

The only such “capital” action which the Bank has taken before this is the stock split in 2011, where it first split face value from Rs.10 to Rs.2 and then in 2019, split it further from Rs.2 to Re.1.

The combination of bonus and dividend reflects the bank’s strong capital adequacy and confidence in sustaining future growth.Post-bonus, share affordability improves for retail investors, possibly leading to increased volumes.

And on the taxation front, bonus shares are not taxed on receipt but capital gains tax applies when sold. But dividends are taxed in the hands of the shareholders as per applicable slab.