Why Did HDFC Bank Stock Fall After Bonus Issue and Block Deal on August 28? Explained

HDFC Bank, India’s largest private sector lender, made headlines this week with its share price swinging sharply. Today, HDFC Bank shares fell nearly 2% on the National Stock Exchange (NSE), reaching an intra-day low of ₹955. This comes right after a major block deal and the bank’s first-ever 1:1 bonus issue, both of which have investors asking: “Why is HDFC Bank stock falling?” and “What does the bonus issue mean for shareholders?”

Table of Contents:

1. What Happened to HDFC Bank Shares Today?
2. How Does a Bonus Issue Affect the Share Price?
3. Why Did the Block Deal Move the Share Price?
4. Is HDFC Bank Still Fundamentally Strong?
5. Frequently Asked Questions (FAQs)

What Happened to HDFC Bank Shares Today?

HDFC Bank’s shares dropped by almost 2% in early trade on August 28, 2025, before recovering slightly later in the session. This move followed two big events:

1. A huge block deal of 15.6 lakh shares changed hands, adding trading activity and short-term pressure to the stock price.

2. The bonus issue adjustment: The stock traded ‘ex-bonus’ after the 1:1 bonus share issue announced in mid-July, meaning shareholders received one new share for every old share, doubling the number of shares held.

Key Data:

• Intra-day low: ₹955 on NSE today.

• Stock traded at ₹970.60 by late morning, up 0.29%.

• Total market capitalisation: ₹14.9 lakh crore.

• The stock opened 62% lower on Tuesday compared to the pre-bonus price, per standard bonus adjustment.

Summary:
HDFC Bank’s share price temporarily reacts to technical changes after a bonus issue and large block deal, not fundamental business weakness.

To review how the bank’s valuation metrics and price trends align with its fundamentals, check the latest HDFC Bank share price along with updated charts and ratios.

How Does a Bonus Issue Affect the Share Price?

When a company issues bonus shares, the number of shares held by investors doubles, but the price of each share adjusts downward in the same proportion. For HDFC Bank:

• 1:1 bonus issue means every shareholder receives one additional share for each share they owned.

• The share price automatically drops to half, but the value of the total holding remains unchanged. No new money enters the company; it’s a technical adjustment.

Example:

If you had 100 shares at ₹200 each, your investment was ₹20,000.
After a 1:1 bonus:

• You now have 200 shares.

• The price adjusts to ₹100 each.

• Total value = 200 × ₹100 = ₹20,000 (unchanged).

Quick Summary:
Bonus shares make the stock look cheaper and boost liquidity, but do NOT affect the total value of investor holdings.

Why Did the Block Deal Move the Share Price?

A block deal involves a large quantity of shares (15.6 lakh HDFC Bank shares today) traded privately between big institutions or major stakeholders. Such deals can cause short-term price pressures due to sudden increased supply, but do not reflect a change in the company’s fundamentals.

• Details of the buyer/seller in this transaction are not public yet.

• Large volume trades through block deals are common after major corporate actions like bonus issues.

Summary:
Block deals add short-term volatility but create opportunities for big players. For retail investors, they are usually a technical event and temporarily move the share price.

There’s a timely video by Ankur Upadhyay SMA on YouTube that explains HDFC Bank’s bonus issue and the block deal impact on its share price — worth watching for sharper market context.

Is HDFC Bank Still Fundamentally Strong?

Yes! The recent price adjustment is NOT due to weak financials. In fact:

• Q1FY26 Net Profit: ₹18,155 crore (12% YoY rise).

• Net Interest Income: ₹31,438 crore (up 5% YoY).

• Retail Loans: Grew 8.1%, SME Loans: up 17.1%.

• Market cap remains ₹14.9 lakh crore.

Takeaway:
HDFC Bank remains India’s largest sector bank with a growing loan book and solid profits. The stock price drop today is a technical effect, NOT a business problem.

Also read about the dividend announcement and record date that accompanied the HDFC Bank Bonus Issue, reflecting the bank’s confidence in its fundamentals.

Frequently Asked Questions (FAQs)

Q1. Why did HDFC Bank shares fall today?
Because of a block deal involving 15.6 lakh shares and adjustments after the 1:1 bonus issue. The fall is technical, not due to bad results.

Q2. What is a bonus share issue?
A bonus share issue means shareholders get extra shares at no additional cost. The price adjusts downward proportionally, but total value remains the same.

Q3. Is it a good time to invest in HDFC Bank?
HDFC Bank’s fundamentals are strong. Price drops from technical adjustments can be good entry points, but investors should track news and overall market trends.

Q4. Did the block deal change ownership structure?
Full buyer/seller details are not public. Block deals among big institutions can move prices but do not necessarily change majority control.

Q5. Will the share price recover?
Historically, blue-chip stocks like HDFC Bank stabilise after bonus issues and block deals. Investors should focus on business trends, not short-term price moves.