Kotak Mahindra Bank declares first stock split in 15 years. Check details here

Private lender Kotak Mahindra Bank's board on Friday, November 21, approved a stock split in the ratio of 1:5. This means investors will get five shares of Kotak Bank for every one share held by them on the record date.

This marks the first stock split by the lender in 15 years. Before this, Kotak Bank had announced a subdivision of shares in a 1:2 ratio in 2010. The corporate action coincides with the 40th Foundation Day of the private sector bank, founded by Uday Kotak.

"The Board of Directors of the Bank have, at their meeting held today on the occasion of 40th Foundation Day, i.e., on November 21, 2025, inter alia, considered and approved sub-division (split) of the existing equity shares of the Bank, as follows: Sub-division (split) of 1 (One) existing equity share of the Bank having face value of Rs. 5/- (Rupees Five only) each, fully paid-up, into 5 (Five) equity shares of the Bank having face value of Re. 1/- (Rupee One only) each, fully paid-up," Kotak Mahindra Bank said in an exchange filing today.

The lender, meanwhile, is yet to announce the stock split record date to determine the shareholders eligible to receive the benefits of the corporate action.

Explaining the rationale behind the move, Kotak Bank said it aims to make the bank’s equity shares more affordable and enhance their liquidity for increased market participation by investors, especially retail investors.

C S Rajan, Part-time Chairman, Kotak Mahindra Bank, said, "As we celebrate 40 years of our journey, we reaffirm our commitment to creating long-term value for our shareholders. This milestone is not just a reflection of our legacy, but a Kotak for the future. On this momentous occasion, to encourage wider investor participation by making the Bank’s equity shares more affordable and liquid, the Board has, subject to regulatory and statutory approvals, decided to subdivide the existing equity shares of face value of ₹ 5/- each into equity shares of a smaller denomination of ₹ 1/- each."

The expected time of completion for the corporate action is tentatively 2 months from receipt of all the regulatory and statutory approvals and the members’ approval.

Kotak Mahindra Bank stock price trend

Shares of Kotak Mahindra Bank ended 0.51% lower at ₹2086.50 on the BSE today. Even though the stock is down 5% in a month, it has risen 17% in 2025 so far and 20% in a year.

According to Trendlyne data, Kotak Bank has a consensus 'BUY' recommendation from 36 analysts that cover the large-cap bank stock.

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