Shares of HDFC Twins, Housing Development Finance Corporation (HDFC) and HDFC Bank fell 2% on the BSE in intraday trade on Tuesday after the dividend ex-date.

HDFC was down 2% at Rs 2,732 in intraday trade on the BSE, while HDFC Bank was down 1% at Rs 1,653.55. The S&P BSE Sensex edged down 0.02% to 62,331.21 at 9:52 am.

The board of directors of HDFC, at its meeting on May 4, 2023, declared an interim dividend of Rs 2 per share at a face value of Rs 44 per share for the financial year ending March 31, 2023 (FY23).

HDFC said the record date to determine shareholders entitled to the FY23 interim dividend is Tuesday, May 16, 2023, subject to board approval. The company further stated that dividends will be paid starting June 1, 2023.

HDFC Bank Board has recommended a dividend of Rs 19 per Re 1 share capital fully paid up (i.e., 1,900%) for FY23. The record date for determining membership entitlement to share dividends is Tuesday, May 16, 2023.

HDFC and HDFC Bank have outperformed the market over the past year, rising 27%, compared with a 17.7% gain for the S&P BSE Sensex.

HDFC is the largest non-banking financial company (NBFC) in housing finance. It has shown consistent performance in both business growth and asset quality.

Meanwhile, the Reserve Bank of India (RBI) gave HDFC Bank three years to comply with the Priority Sector Lending Specification (PSL) after its merger with HDFC, subject to cash reserve ratio and statutory liquidity ratio rules.

Commercial banks must allocate 40% of the previous year’s Adjusted Net Bank Credit (ANBC) to priority sectors per RBI norms.