HDFC Bank Limited in a stock exchange filing on Monday informed that its board will consider stock split later this month. Reacting this, on Tuesday HDFC Bank stock touched an intraday at Rs2358 on the NSE.
listed companies generally go for stock split when the entities think that the share
price has increased to an extent much higher than companies in the same line of
business. Stock splits help make the shares of the company more reasonable for
small retail investors and increase the liquidity of the stock without
affecting the market valuation.
On the earning front, HDFC Bank clocked a 23pc increase in its net profit for the March- quarter to Rs.5,885.12-crore due to its strong growth in net interest income.
At Mid-noon hours of trade, HDFC Bank Limited share price was quoted at Rs2341.40 up Rs.12.94 or 0.56 percent from its previous closing at Rs2328.45. In comparison, the Sensex quoted at 38696.89 up 96.55 points and the Nifty at 11619, up 20.75 points.