HDFC Bank Allots 22.88 Lakh Equity Shares Under Employee Stock Options Scheme

HDFC Bank Limited has completed the allotment of 22,88,142 equity shares to its employees under the Employee Stock Options Scheme (ESOS) on January 21, 2026. The allotment was executed pursuant to the exercise of stock options and Restricted Stock Units (RSUs) by eligible bank employees.

Share Capital Enhancement

The allotment has resulted in an increase in the bank's paid-up share capital. The following table shows the change in share capital structure:

Parameter:	Before Allotment	After Allotment
Number of Equity Shares:	15,38,45,77,216	15,38,68,65,358
Face Value per Share:	Re. 1/-	Re. 1/-
Total Shares Allotted:	-	22,88,142

Employee Stock Options Scheme Details

The allotment was made under HDFC Bank's Employee Stock Options Scheme, which allows eligible employees to acquire equity shares of the bank. The shares were allotted following the exercise of:

Stock options granted under the ESOS
Restricted Stock Units (RSUs) allocated to employees

Regulatory Compliance

HDFC Bank has informed both major stock exchanges about this corporate action. The bank communicated the allotment details to:

BSE Limited: Scrip Code 500180
National Stock Exchange of India Limited: Scrip Symbol HDFCBANK

The official communication was signed by Ajay Agarwal, Company Secretary and Group Head – Secretarial & Group Oversight, ensuring proper regulatory compliance and transparency in the allotment process.

Corporate Information

HDFC Bank Limited, with CIN L65920MH1994PLC080618, is headquartered at HDFC House, H T Parekh Marg, Churchgate, Mumbai. The bank maintains its commitment to employee participation in equity ownership through structured stock option schemes, enabling workforce participation in the organization's growth and success.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.17%	-1.81%	-6.61%	-5.96%	+11.47%	+23.37%

HDFC Bank has received a BUY rating from Motilal Oswal with a target price of ₹1,175 following the bank's Q3FY26 financial results. The brokerage firm's research report highlights the bank's steady performance despite facing regulatory changes and market challenges.

Q3FY26 Financial Performance

HDFC Bank reported strong quarterly results with several key metrics showing positive growth trends:

Financial Metric	Q3FY26 Performance	Growth Rate
Net Profit	₹18,654.00 crores	11% YoY (in-line)
Net Interest Income	₹32,620.00 crores	6.4% YoY (in-line)
Other Income	₹13,250.00 crores	16% YoY (in-line)
Margins on Total Assets	3.35%	+8bp QoQ

The bank's profit growth of 11% year-on-year was achieved despite facing headwinds from the implementation of new labor code regulations, demonstrating the institution's operational resilience.

Key Financial Highlights

The quarter saw notable developments in the bank's income streams and operational adjustments. Treasury operations contributed significantly to other income, with treasury gains reaching ₹930.00 crores compared to ₹70.00 crores in Q3FY25. This substantial increase in treasury performance helped offset other operational challenges.

However, the bank reported an ₹800.00 crores impact arising from the transition to the new labor code, reflecting the ongoing regulatory adjustments in the banking sector.

Provisions and Risk Management

A significant positive development was observed in the bank's provision expenses, which stood at ₹2,840.00 crores, coming in 20% lower than Motilal Oswal's estimates. This improvement was primarily driven by the bank's decision to release ₹1,040.00 crores of contingent provisions related to a large borrower group, indicating improved asset quality management.

Future Outlook and Projections

Motilal Oswal has fine-tuned its earnings estimates for HDFC Bank and projects the institution to deliver strong returns in the coming years:

Projection Metric	FY27E Target
Return on Assets (RoA)	1.9%
Return on Equity (RoE)	14.5%

The brokerage firm's target price of ₹1,175 is based on 2.5x September 2027E Adjusted Book Value plus ₹137.00 for subsidiaries, reflecting confidence in the bank's long-term growth prospects and operational efficiency improvements.