Synopsis:
The shares of one of the largest private banks in India gained attention after its board approved a 1:5 stock split, which aimed to make shares more affordable and increase liquidity.
The shares of one of the largest private sector banks in India is in focus today after announcing that its board has approved a stock split, a move likely aimed at making its shares more affordable and improving liquidity for investors.
With Market Capitalization of Rs. 4,14,953.31 crore, Kotak Mahindra Bank Limited closed at 2,086.50 on Friday, down by 0.58 percent from its previous closing price of Rs. 2,098.70 per equity share.
What’s the News?
Kotak Mahindra Bank Limited held a Board meeting on November 21, 2025 and the board had approved a proposal to split each existing Rs. 5 equity share into 5 shares of Rs. 1 each, subject to shareholders approval.
What is a Stock Split?
A stock split means a company divides its existing shares into a larger number of shares. This does not change the total value of an investor’s holding, but increases the number of shares they own while reducing the price of each share.
For example, if you own 1 share worth Rs. 1,000 and the company announces a 1:5 stock split, you will then have 5 shares worth Rs. 200 each. Stock splits make shares more affordable and can improve liquidity in the market.
About the Company
In February 2003, the RBI granted the first non-banking finance company in India a banking license: Kotak Mahindra Bank Ltd., formerly known as Kotak Mahindra Finance Ltd. In April 2015, the merger with ING Vysya Bank was completed. The bank has 2,154 branches and 2,927 ATMs (including cash recyclers) in India as of June 30, 2025. It also has a presence abroad in GIFT City and the DIFC in Dubai. The bank serves both retail and corporate clients in both urban and rural areas through its four main business units: consumer banking, corporate banking, commercial banking, and treasury.
The company reported Q2 FY26 net interest income of Rs. 7,311 crore, growing 4.15 percent YoY from Rs. 7,020 crore but declining 0.72 percent QoQ compared to Rs. 7,259 crore in Q1 FY26. Profit for Q2 FY26 stood at Rs. 3,253 crore, which is a 2.72 percent YoY decline from Rs. 3,344 crore and a slight 0.88 percent QoQ drop from Rs. 3,282 crore, indicating modest sequential stability but weaker profitability versus last year.
At the movement company is trading at a price-to-earnings (P/E) ratio of 22.4x which is lower than industry average of 15.3x. A return on equity (ROE) of about 15.4 percent and a return on capital employed (ROCE) of about 8.17 percent demonstrate the company’s financial position. Its debt-to-equity ratio stands at 3.62, showing low leverage in the company.
Written By Akshay Sanghavi
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