HDFC Bank declares 1550% dividend for shareholders; suffers biggest hit as BSE’s most-valued firms lose Rs 2.21 lakh cr

HDFC Bank on Saturday declared a 1550 per cent or 15.50 per share dividend to its shareholders for the financial year 2021-22. 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, HDFC Bank said in a regulatory filing. This is subject to the approval of the shareholders at the ensuing Annual General Meeting, it said. The record date for determining the eligibility of members entitled to receive dividend on equity shares is May 13, 2022, it said. Last Saturday, the country’s largest private sector lender HDFC Bank reported a 23 per cent jump in standalone net profit to Rs 10,055.20 crore for the March quarter, led by growth in loan demand across categories and lower provisioning as bad loans were trimmed. The bank’s net profit during the corresponding period of the previous fiscal stood at Rs 8,186.51 crore. 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. Eight of the top-10 most valued firms together lost Rs 2,21,555.61 crore from their market valuation last week in-line with the weak trend in the broader market, with Infosys and HDFC Bank suffering the biggest hit. The 30-share benchmark index, Sensex, lost 1,141.78 points or 1.95 per cent last week. From the top-10 pack, only Reliance Industries and Adani Green Energy emerged as the gainers. The market valuation of Infosys tumbled Rs 68,548.8 crore to Rs 6,67,062.55 crore. The market capitalisation (mcap) of HDFC Bank dived Rs 60,536.97 crore to reach Rs 7,51,801.60 crore. Bharti Airtel’s valuation tanked Rs 30,127.49 crore to Rs 4,05,723.51 crore and that of Tata Consultancy Services plummeted by Rs 18,094.01 crore to Rs 13,21,594.47 crore. The valuation of State Bank of India declined by Rs 15,261.09 crore to Rs 4,46,587.56 crore and that of Bajaj Finance went lower by Rs 13,264.96 crore to Rs 4,30,420.83 crore. The mcap of ICICI Bank dipped Rs 10,376.97 crore to Rs 5,19,362.62 crore and that of Hindustan Unilever Limited slumped Rs 5,345.32 crore to Rs 5,00,392.45 crore. In contrast, the market valuation of Reliance Industries zoomed Rs 1,39,357.52 crore to reach Rs 18,66,071.57 crore. The market capitalisation of Adani Green went higher by Rs 3,698.89 crore to Rs 4,51,749.88 crore. Meanwhile, housing finance company HDFC has been knocked out of the country’s 10 most-valued companies in terms of market capitalisation following a significant decline in its share price. During the week ended April 22, shares of the company tumbled 7.19 per cent. On April 4, HDFC announced that it will merge operations with HDFC Bank. Once the deal is effective, HDFC Bank will be wholly owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the bank. The shares of HDFC have tumbled nearly 18 per cent since the merger announcement. In the ranking of top-10 firms, Reliance Industries was leading the chart, followed by TCS, HDFC Bank, Infosys, ICICI Bank, Hindustan Unilever, Adani Green Energy, State Bank of India, Bajaj Finance and Bharti Airtel. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.