Kotak Mahindra Bank To Consider Stock Split On November 21; Key Points For Investors

Kotak Mahindra Bank

Kotak Mahindra Bank, India’s third-largest private lender by market value, has announced that its board will meet on November 21 to consider a proposal to split its equity shares. In a regulatory filing, the bank said the board will evaluate a plan to sub-divide its existing fully paid-up shares with a face value of Rs 5 each.

A stock split increases the number of outstanding shares by dividing existing ones into smaller units, making the stock more affordable for retail investors and improving liquidity. If approved, this would mark Kotak Bank’s first stock split in 15 years—the last one took place in 2010, according to Trendlyne.

The bank, with a market capitalisation of about Rs 4.14 lakh crore, recently reported a second-quarter net profit of Rs 3,253 crore, largely in line with expectations. Pre-provisioning operating profit was stronger than anticipated, while net interest income rose 4% year-on-year to Rs 7,311 crore. Asset quality improved as well, with credit costs easing amid stabilisation in the unsecured loan segment, noted Axis Securities.

Despite a steady performance this year—shares are up roughly 16% year-to-date—analysts remain mostly neutral. Nomura maintained a hold rating with a target price of Rs 2,200, raising FY26–28 EPS estimates by 1–2% on lower operating expenses and reduced credit costs. Margins, however, contracted by 11 basis points in Q2 due to the June repo rate cut and a shift toward retail assets. Axis Securities expects net interest margins to have bottomed out and to improve in the second half of the year.

Nuvama, meanwhile, has a target of Rs 2,082, highlighting that margin and slippage performance has lagged peers for two consecutive quarters.

Ahead of the announcement, Kotak Bank shares closed 0.5% higher at Rs 2,075.15 on Friday on the NSE.