HDFC Bank , one of India's leading private sector banks, saw its shares begin trading ex-dividend on the Bombay Stock Exchange (BSE) today. The bank had declared a dividend of Rs 22.00 per share, leading to an adjustment in the stock price.

Stock Performance

As the shares went ex-dividend, HDFC Bank's stock price fell to Rs 1,993.05 on the BSE, representing a dip of approximately 1.5%. This price movement is in line with the expected adjustment for the dividend payout.

Recent Financial Performance

The ex-dividend trading coincides with HDFC Bank's recently reported financial results for the fourth quarter. The bank demonstrated a solid performance in key financial metrics:

The bank's profit after tax saw a year-on-year increase of 6.7%, reaching Rs 17,616.00 crore. This growth indicates the bank's ability to maintain profitability in a competitive banking environment.

HDFC Bank's net interest income, a crucial indicator of a bank's core performance, rose by 10.3% compared to the same quarter in the previous year, amounting to Rs 32,070.00 crore. This growth in net interest income suggests that the bank has been effective in managing its interest-earning assets and interest-bearing liabilities.

Dividend Details

The declared dividend of Rs 22.00 per share reflects the bank's commitment to returning value to its shareholders. Investors who held HDFC Bank shares before the ex-dividend date will be eligible to receive this dividend payout.

The ex-dividend trading and recent financial results provide a snapshot of HDFC Bank's current position in the market. As one of the largest private sector banks in India, HDFC Bank's performance often serves as a barometer for the overall health of the Indian banking sector.

In a recent development involving one of India's leading private sector banks, HDFC Bank CEO Sashidhar Jagdishan has sought to quash a First Information Report (FIR) that alleges his involvement in a ₹2.05 crore kickback scheme. The case has taken an unexpected turn in the Bombay High Court, where it has been transferred to a new bench following objections raised regarding the presiding judge's shareholding in HDFC Bank.

Legal Proceedings and Allegations

The FIR in question accuses Jagdishan of being involved in a kickback scheme amounting to ₹2.05 crore. While the details of the allegations remain unclear, the case has garnered significant attention due to the high profile of both the accused and the institution involved.

Judicial Transfer

The Bombay High Court's decision to transfer the case to a new bench came after concerns were raised about potential conflict of interest. The original judge assigned to the case was found to be a shareholder in HDFC Bank, prompting the transfer to ensure impartiality in the proceedings.

Bank's Response

HDFC Bank has responded to the situation, claiming that the FIR is a retaliatory measure. According to the bank, the complaint is linked to recovery proceedings initiated against a company named Splendour Gems. This statement suggests that the bank views the FIR as a counter-move in response to its efforts to recover funds.

Implications and Next Steps

The transfer of the case to a new bench is likely to ensure a fair hearing, free from potential conflicts of interest. As the legal proceedings unfold, the banking and financial sectors will be closely watching the outcome, given HDFC Bank's prominence in the Indian banking landscape.

The case raises important questions about corporate governance, the relationship between banks and their clients, and the legal challenges faced by high-ranking executives in the financial sector. As the new bench takes over, all eyes will be on the Bombay High Court for further developments in this high-stakes legal battle.