Public vs Private Banking Stocks: Large Cap Stocks with good investing Portfolio, Check Here
HDFC Bank announces 1:1 bonus issue and special dividend while SBI delivers higher dividend yield with record payout in FY25. A comparative look at private vs public sector lenders.
The Dividend of Large cap Banking stocks are debatable between Private Sector and Public Sector stock that are delivering higher dividend payouts and profit ratio. This is quite interesting to estimate the accurate analysis of Large and Mid-cap stocks that is providing chaos among investors.
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HDFC Bank:
The largest private sector lender HDFC Ltd Bank has announced that it will give a bonus issue in the ratio of 1:1 that will provide the shareholders of HDFC Bank with one extra share for every share they hold.
The bank has fixed the ex-date on 26th August, 2025 and the record date has been scheduled as 27th August for the bonus issue.
This bonus issue is a well-marketing strategy to induce and enhance liquidity structure and maintain credibility among stock retail investors. The Bank has announced a special dividend of Rs 5 per share on 21 July 2025.
The average dividend growth rate of the Bank for the last three years is 30.00%. On April 21, 2025 the bank announced a dividend of Rs 22 per share.
The current dividend yield is around 1.10% to 1.37% which depends on exchange and pricing.
In addition, the bank has also declared dividends of Rs 6.50 per share in 2021, Rs 15 per share in 2019, and Rs 13 per share in 2018.
The Bank has also announced share splits with face value split from Rs 2 to Rs 1 per share in 2019 and Rs 10 to Rs 2 per share in 2011.
SBI:
The largest Public Sector Lender of India, SBI has declared a dividend of Rs 15.90 per equity share for FY25, with a commendable dividend yield of 1.95%.
The Bank has not announced any Bonus Issue since 2018.
The Public Sector Bank had last split the face value of its shares from Rs 10 to Rs 1 in 2014.
The share has been trading on an ex-split basis since 2014.
The Bank has declared a dividend of Rs15.90 per equity share at the end of the financial year of March 31, 2025.
This promotes to a 1590% dividend payout with the face value of Rs1 per share.
The key details are mentioned below:
-Dividend Amount: Rs15.90 per share
-Record Date: May 16, 2025
- Dividend Payment Date: May 30, 2025
- Forward Dividend Yield: 1.95%
This Total Dividend Payout of Rs 8,076.84 crore is much higher than the Rs 6,959.29 crore paid in FY24.
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The dividend payments by largest capital Lenders and Cooperatives are expected to boost the government's revenue and support fiscal deficit targets. The central government collected Rs 30.36 lakh crore in revenue from tax and non-tax receipts in FY25, with PSU earnings constituting a significant portion. Therefore, a major contribution of Public Sector Units have been estimated in larger revenue growth of the country.
Read Also : Public vs Private Banking Stocks: Large Cap Stocks with good investing Portfolio, Check Here