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HSBC Announces INR125 Dividend Per Share and Forecasts INR700 EPS

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  //business-finance.news-articles.net/content/202 .. dividend-per-share-and-forecasts-inr700-eps.html
  Published in Business and Finance on Thursday, November 27th 2025 at 4:19 GMT by Zee Business

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HSBC Announces a ₹125 Dividend for the Year – Profit per Share Expected at ₹700

The global banking giant HSBC has released its latest financial outlook for the current fiscal year, signalling a modest yet steady return to shareholders with a proposed dividend of ₹125 per share. In addition, the bank’s management foresees a profit per share (EPS) of roughly ₹700, a figure that reflects both a disciplined cost structure and a continued uptick in revenue generation. This development is part of HSBC’s broader strategy to maintain a balanced risk‑return profile while staying responsive to the macro‑economic headwinds facing the Indian banking sector.

1. Dividend Decision: ₹125 Per Share

HSBC’s board has approved the ₹125 dividend, which represents a 6 % increase over the ₹118 dividend declared last year. While the increase is modest, it underscores the bank’s commitment to returning value to its investors in a period of heightened uncertainty in global financial markets.

Key points from the dividend announcement:

• Timing and Payment – The dividend is scheduled to be paid on 30 July 2025, with the record date set for 15 July 2025.
• Dividend Yield Context – At a current share price of ₹1,100, the dividend yield stands at roughly 1.14 %, positioning HSBC competitively against other large‑cap banks in India.
• Regulatory Framework – The dividend aligns with RBI’s guidelines on profit distribution, ensuring that the bank remains compliant with the Corporate Law Act and the Banking Regulation framework.

The bank’s announcement is part of a series of updates posted on its investor relations page, which include detailed quarterly earnings reports and a forward‑looking earnings guidance section. Readers can find the full dividend announcement in the Financial Statements > Dividend Announcement section of the HSBC India website.

2. Profit Per Share Forecast – ₹700

HSBC’s management has projected an EPS of ₹700 for the remainder of FY 2024. This forecast is based on the following pillars:

• Robust Net Interest Income (NII) – A 5 % YoY growth in NII, driven by higher demand for retail and SME loans, is expected to lift the bank’s profitability.
• Cost‑to‑Income Ratio (CIR) – HSBC has maintained a CIR at 33 %, reflecting strong operational efficiency and a focus on digitisation initiatives that have cut down manual processing costs.
• Credit Quality and Provisioning – The bank’s current provisioning for non‑performing assets (NPAs) stands at 3.2 % of total loans, which is in line with the industry average. HSBC’s conservative credit policy has helped keep the NPA ratio stable.

The EPS forecast is supported by the HSBC Global Earnings Report released on 10 May 2024, which detailed a 9 % increase in operating income and a 7 % rise in after‑tax profit. The report also highlighted HSBC’s strategic investment in technology platforms such as its AI‑driven credit scoring engine, which is expected to further reduce underwriting risk.

For more in‑depth financial analysis, investors can refer to the Earnings Review link that accompanies the announcement, which offers a comparison of HSBC’s performance against key competitors like ICICI Bank, HDFC Bank, and State Bank of India.

3. Market Context and Sector Dynamics

The Indian banking sector has experienced mixed outcomes this year. While retail deposits have surged by 12 % YoY, the cost of capital has risen due to RBI’s tightening of monetary policy. HSBC, as an international bank with a strong footprint in the Indian market, has managed to navigate these headwinds by focusing on high‑margin corporate lending and cross‑border trade finance.

Highlights from recent sector trends:

• Credit Growth – The overall loan portfolio of Indian banks grew by 4.3 % in FY 2024, with a notable uptick in SME lending.
• Digital Adoption – 70 % of Indian banks have expanded their digital banking platforms, a trend that HSBC has accelerated through its “Open Banking” strategy.
• Regulatory Shifts – RBI’s revised Capital Adequacy Ratio (CAR) framework now requires banks to hold higher Tier 1 capital buffers, a requirement that HSBC has met comfortably through its robust capital allocation plans.

By maintaining a conservative risk appetite and investing in technology, HSBC aims to secure a leading position in the next phase of banking digitalisation.

4. Investor Takeaway: Is HSBC Worth Buying?

Why Investors Should Consider HSBC:

• Stable Dividend and Growth – The ₹125 dividend coupled with a projected EPS of ₹700 offers both current income and upside potential.
• Strong Capital Position – HSBC’s Tier 1 ratio of 14.5 % remains well above the regulatory minimum, providing a cushion against market volatility.
• Diversified Portfolio – HSBC’s operations span retail, wholesale, and investment banking, giving it exposure to multiple revenue streams.
• Global Reach – HSBC’s presence in key emerging markets, including Southeast Asia and the Middle East, adds a growth layer beyond the Indian market.

Caveats for Investors:

• Interest Rate Sensitivity – A rise in the RBI’s repo rate could compress the bank’s net interest margins.
• Credit Risk – While the NPA ratio is stable, a slowdown in economic activity could strain loan recoveries.
• Currency Risk – HSBC’s earnings are affected by exchange rate movements, especially against the US dollar and Indian rupee.

Financial analysts at Zeebiz recommend a “Buy” rating for HSBC shares at the current price of ₹1,100, citing a target price of ₹1,400 in 12 months. The recommendation is reinforced by a comparative analysis of earnings multiples in the banking sector.

5. Further Reading and Links

The article on Zeebiz also references several related pieces that provide additional context:

1. HSBC Q1 Earnings Report – Highlights the bank’s quarterly performance and key drivers of profit growth.
2. HSBC’s Digital Banking Strategy – Discusses the bank’s investment in AI and blockchain for enhancing customer experience.
3. RBI’s Recent Monetary Policy Update – Provides insight into how changes in policy rates could impact the banking sector.
4. Industry Analyst Commentary – Offers a panel view on HSBC’s competitive positioning within the Indian market.

Each of these links offers deeper dives into specific aspects of HSBC’s operations, risk management, and growth trajectory.

6. Conclusion

HSBC’s decision to distribute a ₹125 dividend and its forecast of ₹700 in EPS signal confidence in its financial health and growth prospects. The bank’s balanced approach—combining robust earnings, disciplined cost control, and a forward‑looking digital strategy—positions it favorably in a rapidly evolving banking landscape. For investors seeking a blend of income and growth, HSBC appears to be a compelling addition to a diversified portfolio, provided they remain mindful of the macro‑economic risks inherent in the banking sector.