Kotak Mahindra Bank to Review Stock Split Proposal on November 21.
Kotak Mahindra Bank, India’s third-largest private lender by market value, will convene its board on November 21 to consider a stock split. In a regulatory filing, the bank said it will examine a proposal to sub-divide its fully paid-up equity shares, which currently have a face value of ₹5 each.
A stock split increases the number of shares while proportionately reducing the share price, making the stock more accessible to retail investors and improving liquidity. If approved, this would be Kotak Bank’s first split since 2010, according to Trendlyne data.
The bank, valued at around ₹4.14 lakh crore, recently posted a Q2 net profit of ₹3,253 crore, largely in line with estimates. Pre-provisioning operating profit came in ahead of expectations, while net interest income rose 4% year-on-year to ₹7,311 crore. Asset quality improved as credit costs eased, supported by stabilisation in the unsecured loan segment, Axis Securities noted.
Despite a 16% rise in the stock so far this year, analysts remain cautious. Nomura has maintained a hold rating with a target price of ₹2,200, marginally raising FY26–28 earnings forecasts on expectations of lower operating expenses and softer credit costs. Margins, however, dipped 11 basis points in Q2 following the June repo rate cut and a continued move toward retail assets. Axis Securities believes margins have likely bottomed out and should improve in the second half.
Nuvama has a target of ₹2,082, pointing out that Kotak Bank’s margin and slippage performance has trailed peers for two consecutive quarters.
Ahead of the board meet, Kotak Bank shares closed 0.5% higher at ₹2,075.15 on Friday on the NSE.
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