Kotak Mahindra Bank's shares are in focus today, November 21, 2025, as the bank's board of directors meets to consider a proposal for a stock split. The meeting, announced on November 17, has generated considerable interest among investors, as this would be the first stock split for the company in 15 years.
The board will consider a sub-division of the existing equity shares, which currently have a face value of ₹5 each. The specifics of the split ratio will be determined by the board during the meeting. If approved, the stock split will likely increase the number of outstanding shares while reducing the face value, making the stock more accessible to retail investors and potentially boosting liquidity.
Kotak Mahindra Bank last undertook a stock split in September 2010, when it split one equity share with a face value of ₹10 into two shares with a face value of ₹5 each. This effectively doubled the number of shares in circulation without altering the company's overall market capitalization. The bank also issued a bonus issue in July 2015, with a bonus ratio of 1:1.
Stock splits are often viewed favorably by investors as they can make the stock seem more affordable, attracting a broader range of potential buyers. Increased accessibility can lead to higher trading volumes and potentially a higher stock price due to increased demand.
In anticipation of the board meeting, Kotak Mahindra Bank's shares saw a rise of over 1% on November 17, reaching a high of Rs 2,100 on the NSE. The announcement of the meeting and the potential stock split has clearly had a positive impact on investor sentiment.
Kotak Mahindra Bank, founded by Uday Kotak in 1985, has grown into one of India's leading private sector banks. The Kotak Group has diversified operations including commercial vehicle financing, consumer loans, corporate finance, and asset reconstruction. Through its subsidiaries, the bank is also involved in investment banking, equity broking, securities-based lending, and car finance.
In the second quarter of FY26, Kotak Mahindra Bank reported a standalone net profit of Rs 3,253.33 crore, a slight decrease of 2.70% compared to the same period last year. However, the bank's total income rose 2.12% year-on-year to Rs 16,238.59 crore. While the bank's second-quarter earnings were largely in line with expectations, its pre-provision operating profit exceeded forecasts, according to Incred Equities. Net interest income grew 4 percent year-on-year to approximately Rs 7,311 crore. However, the bank's margins experienced a slight decrease of 11 basis points sequentially in Q2, primarily due to the full impact of June's 50-basis-point repo rate reduction and a shift in the loan mix towards retail assets.
The outcome of today's board meeting will be closely watched by investors, as a stock split could signal further growth and increased accessibility for Kotak Mahindra Bank's shares.
