Kotak Mahindra Bank Board to Review Stock Split Proposal on November 21

Kotak Mahindra Bank Board to Weigh Stock Split Proposal on November 21.

Kotak Mahindra Bank, India’s third-largest private-sector lender by market value, will hold a board meeting on November 21 to consider splitting its equity shares. In a regulatory filing, the bank said it will evaluate the proposal to sub-divide its fully paid-up shares, which currently carry a face value of ₹5 each.

A stock split increases the number of shares while reducing the price per share, improving affordability for retail investors and boosting market liquidity. If cleared, this will be Kotak Bank’s first stock split since 2010, as per data from Trendlyne.

The lender, valued at about ₹4.14 lakh crore, recently posted a Q2 net profit of ₹3,253 crore, broadly meeting Street expectations. Pre-provisioning operating profit exceeded estimates, while net interest income rose 4% year-on-year to ₹7,311 crore. Asset quality also strengthened, helped by easing credit costs and a stabilising unsecured loan portfolio, according to Axis Securities.

Despite the steady financials—its stock is up nearly 16% so far this year—analyst sentiment remains mixed. Nomura has retained its hold rating with a target price of ₹2,200, marginally raising FY26–28 earnings forecasts due to lower operating expenses and credit costs. Margins, however, slipped 11 basis points during Q2, weighed down by the June repo rate cut and a continued tilt toward retail lending. Axis Securities expects margins to have bottomed out and to pick up in the second half.

Nuvama has set a target of ₹2,082, flagging that the bank’s margin and slippage trends have trailed peers for the past two quarters.

Ahead of the board meet, Kotak Bank shares closed 0.5% higher at ₹2,075.15 on Friday on the NSE.