In honor of Kotak Mahindra Bank’s 40th Foundation Day, the Board of Directors approved a stock split on Friday to lower the price of the bank’s shares for investors. One existing equity share with a face value of Rs 5 will be divided into five equity shares with a face value of Rs 1 each, according to the Bank. Every share will continue to be completely paid up.
The bank stated in the filing, “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.”
When a business splits its current shares into smaller units by lowering each share’s face value, this is known as a stock split. For instance, in a 1:5 split, one share becomes five shares and the face value may decrease from Rs 5 to Rs 1. The overall worth of your investment remains constant because the market price likewise fluctuates in the same ratio. In order to boost trading activity and make the share price appear more reasonable, companies typically divide their stock.
The Reserve Bank of India (RBI), shareholders, and other regulatory bodies must all approve the stock split and the associated changes before they take effect.
Today, November 21, 2025, the Kotak Mahindra Bank share finished at Rs 2,086.50 on the NSE, a slight decrease of roughly -0.58% from its previous closing.
The bank recently reported a net profit for the second quarter of Rs 3,253 crore, which was mostly expected. Net interest income increased 4% year over year to Rs 7,311 crore, and pre-provisioning operational profit exceeded projections. According to Axis Securities, asset quality also improved, with credit costs decreasing as the unsecured loan book stabilized.
The majority of analysts remain indifferent despite the stock’s 16% increase so far this year. Due to lower operational costs and weaker credit charges, Nomura slightly increased its FY26–28 EPS forecasts by 1%–2% while maintaining its hold rating with a target of Rs 2,200. However, because of the June repo rate drop and a shift toward retail loans, margins fell by 11 basis points in Q2. According to Axis Securities, margins might have reached their lowest point and could rise in the second half.
