HDFC Declares 1550% Dividend For All Investors: Highest Dividend By HDFC In Last 10 Years
For the financial year ending March 31, 2022, the largest private lender of India, HDFC Bank has declared a dividend of Rs 15.50 or 1,550 per cent per equity share, with a face value of Re 1 each, to its shareholders.
A Dividend of Rs 15.50/share, Increased Inline Profits For FY22
For the financial year 2021-22, the board of HDFC Bank at its meeting has recommended a dividend of Rs 15.50 per equity shares as per the company regulatory filing.
It said that the recommendation is subject to the approval of the shareholders at the annual general meeting (AGM) of the company.
The record date for the same has been fixed as May 13, 2022 and the investors having shares in their account as of record date will be eligible for the entitlement of equity shares.
For the March quarter, the private lender HDFC Bank reported a 23 per cent year-on-year (YoY) rise in net profit at Rs 10,055.20 crore after providing for Rs 2,989.50 crore in taxation.
In the previous year same quarter, the bank had reported a profit of Rs 8,187 crore. The numbers of this year are in line with the expectations of the street.
A Merger On The Way, Gets “Buy” Rating
Taking the stock market by surprise, there was an announcement by the company that the bank has announced a merger with the parent company, HDFC over the period of next 18 months.
The new entity which will then be formed shall have a combined balance sheet of Rs 17.87 lakh crore.
With a target price of Rs 1,831, Brokerage firm LKP Securities has a “buy” recommendation for the same. The firm believes superior underwriting practices, higher liquidity, adequate coverage and strong capital position makes the bank best in class.
HDFC Bank’s future growth trajectory remains positive on lines of the merger prospects and resumption of digital operations, said Geojit Financial Services, with a ‘buy’ rating and a target price of Rs 1,907 on the stock.