Explained: Here’s what HDFC Bank’s 1550% dividend means for shareholders

HDFC Bank has declared a 1550% dividend to its shareholders for the financial year 2021-22.

New Delhi: HDFC Bank, on Saturday (April 24) declared a 1550% dividend to its shareholders for the financial year 2021-22. The staggering number in big bold headlines appears to be confusing HDFC investors at the moment. However, they need to understand what it really means. 

How much dividend will HDFC Bank shareholders get? 

HDFC Bank said in a regulatory filing said that the board at its meeting has recommended a dividend of Rs 15.50 per equity share of Re 1 (1550 per cent) out of the net profits for the year ended March 31, 2022, 

This means that shareholders will receive 15.50 as a dividend for each share they own for the financial year 2021-22. However, the bank has mentioned in the filing that the announced dividend is subject to the approval of the shareholders at the ensuing Annual General Meeting. 

The record date for determining the eligibility of members entitled to receive dividends on equity shares is May 13, 2022, the filing read.

Last Saturday, HDFC Bank reported a 23 per cent jump in standalone net profit to Rs 10,055.20 crore for the quarter ending March 2022. The country's largest private sector lender’s growth was led by high demand for loans across categories and lower provisioning as bad loans were trimmed. HDFC bank's net profit during the corresponding period of the previous fiscal stood at Rs 8,186.51 crore. Also Read: iPhone users, Alert! Apple will soon remove several apps from App Store, here’s why

Also, in a surprise announcement earlier this month, the bank said its parent company HDFC Ltd will be merged into HDFC Bank in about 18 months and the combined balance sheet will reach Rs 17.87 lakh crore. Also Read: iPhone 12 price cut! Apple smartphone’s rate drops to Rs 39,999, check offer details

- With PTI Inputs.