Karur Vysya Bank (KVB) has periodically issued bonus shares to its shareholders, providing additional equity without any cash outflow.
The lender recently announced its Q1 results for FY26 and also declared a bonus issue for shareholders at a 1:5 ratio.
Bonus issues increase the number of shares held by investors in proportion to their existing holdings, enhancing liquidity and sometimes signaling management’s confidence in the company.
Let’s take a look at the record for the recent bonus announcement and bonus history of Karur Vysya Bank:
In July, the board of directors approved the issuance of bonus shares in the ratio of 1:5, meaning shareholders will receive one additional equity share of ₹2 each for every five fully paid-up equity shares of ₹2 each they hold, subject to shareholder approval.
According to the stock exchange filing dated July 24, the bonus shares will be allotted to members who hold shares as of the record date.
Bonus Issue Date | Bonus Ratio |
14 Aug 2018 | 1:10 |
16 Sep 2010 | 2:5 |
21 Oct 2002 | 1:1 |
Bonus issues do not change the overall value of the investment immediately, but they increase the number of shares held and often improve liquidity in the market. Over time, consistent bonus issues reflect the bank’s focus on rewarding long-term investors.
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Karur Vysya Bank has a strong track record of issuing bonus shares, with notable distributions in 2002, 2010, 2018. Investors who held shares during these record dates benefited from additional equity.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 19, 2025, 3:20 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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