Kotak Mahindra Bank stock split: One of India’s largest private lenders — Kotak Mahindra Bank — announced on Friday, November 14, that its board will meet next week to consider stock split of shares.
The board meeting date has been fixed as Friday, November 21.
“We wish to inform you pursuant to the provisions of Regulation 29(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 that a meeting of the Board of Directors of the Bank would be held on Friday, November 21, 2025 to, inter alia, consider a proposal for sub-division (split) of the existing equity shares of the Bank having face value of Rs. 5/- each, fully paid-up, in such manner as may be determined by the Board of Directors,” Kotak Mahindra Bank said in an exchange filing today.
If approved, this would be the first such announcement by the private bank company in as many as 15 years. The last stock split was declared by Kotak Mahindra in 2010 in the ratio of 2:1.
Kotak Mahindra Q2 Results
The lender recently posted a tepid set of earnings for the July-September quarter, wherein it saw an 11% year-on-year (YoY) decline in its consolidated net profit to ₹4,468 crore, pulled down by a slower growth in core income and weak performance of some subsidiaries.
Meanwhile, on a standalone basis, too, its profit fell 3% YoY to ₹3,253 crore for the quarter under review.
Total consolidated income dropped to ₹24,901.39 crore in the second quarter of FY2025-26 (FY26) from ₹26,880.02 crore in the year-ago quarter. Standalone income, however, rose to ₹16,239 crore YoY from ₹15,900 crore in the same period last year.
Kotak Mahindra Bank’s core net interest income rose 4% to ₹7,311 crore, supported by a 16% increase in advances. However, the growth was tempered by a sharp drop in net interest margin, which fell to 4.54% from 4.91% in the same period last year.
From an asset quality perspective, fresh slippages came down to ₹1,629 crore from ₹1,875 crore in the year-ago period, and the gross non-performing assets ratio improved to 1.39% as of September from 1.48% in June.
Net NPAs or bad loans declined to 0.32%, from 0.43% at the end of the second quarter of the previous fiscal.
Commenting on the earnings, Elara Securities said that it retained an ‘Accumulate’ rating, with a higher target price of ₹2,481.
“The bank has had an uncharacteristic softer past couple of quarters, even if we were to see a challenging operating environment. We believe the bank offers a safer earnings compounding story and can essentially push on growth. We adjust for subsidiary valuation and roll over to September 2027E, resulting in a higher TP of ₹2,481 from ₹2,398 based on a SOTP method,” it said.
Shares of Kotak Mahindra Bank closed the day flat at ₹2075.15 on the BSE.
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