HDFC Bank Proposes Final Dividend Amid Leadership Changes and Profit Growth

HDFC Bank's Dividend Announcement and Financial Performance

The Board of Directors at HDFC Bank has put forward a proposal for a final dividend of Rs 13.00 per equity share, based on a face value of Re 1, for the fiscal year ending March 31, 2026, pending approval from shareholders. The private sector bank has reported a net profit of Rs 19,221 crore for the March quarter, reflecting a 9% increase from Rs 17,616 crore in the same quarter of the previous year. The total dividend for FY26 amounts to Rs 15.50 per equity share, with the record date for determining eligible shareholders set for Friday, June 19, 2026.

This quarterly report follows the resignation of Atanu Chakraborty, the part-time chairman and independent director, who cited differences regarding 'values and ethics' with the bank's management. In Q4 FY26, HDFC Bank's Net Interest Income (NII) rose by 3.8% to Rs 33,281.5 crore, up from ₹32,066 crore year-on-year. Additionally, provisions for the March quarter decreased to Rs 2,609.57 crore from Rs 2,837.86 crore quarter-on-quarter and from Rs 3,193.05 crore year-on-year.

The gross Non-Performing Asset (GNPA) ratio improved to 1.15% in Q4 FY26, down from 1.24% in Q3 FY26, while the net NPA (NNPA) ratio also saw a decline to 0.38% from 0.42% in the previous quarter. The GNPA fell to Rs 34,061.2 crore in the fourth quarter, compared to Rs 35,179 crore in the prior quarter.

During the March 2026 quarter, HDFC Bank experienced a significant sell-off of approximately Rs 35,000 crore in shares by foreign investors, leading to a 26.2% drop in the bank's stock price. This marks the most substantial decline since March 2020, when shares fell over 33%. This situation has arisen alongside the unexpected resignation of Chairman Atanu Chakraborty.

In March, Chakraborty stepped down from his role, expressing concerns over 'certain happenings and practices' at the bank that he felt did not align with his personal values and ethics.