Kotak Mahindra Bank stock split: How many shares will investors receive?

Synopsis: The shares of this bank were in focus following its announcement of a 1:5 stock split, having a record date as of January 14, 2026. The move will not change business and financials but will increase the share count and lower the per-share price with increased liquidity. 

The shares of this bank, which is a diversified financial services group with a strong presence across retail and corporate banking, spanning investment banking, stockbroking, vehicle finance, asset management, and life and general insurance, were in focus after the bank announced a 1:5 stock split. 

With the market cap of Rs 4,27,646 crore, the shares of Kotak Mahindra Bank Ltd had hit their intraday high at Rs 2,161 compared to their previous day’s closing price of Rs 2,158. The shares are trading at a PE of 23, whereas their industry PE is at 14.7.

About the stock split 

Kotak Mahindra Bank announced a stock split in a ratio of 1:5. Based on this split, an existing equity share of face value of Rs 5 would be divided into equity shares of face value of Rs 1. The recording date for determining the shareholders eligible for such a split is fixed as January 14, 2026. The decision to do a stock split would neither change the business activities of Kotak Mahindra Bank nor its financial position.

On the investment side, the stock split will ensure that the investor’s share count rises while increasing the price per share in the opposite manner, without changing the net investment. This type of stock split is normally conducted to make high-priced shares more readily available to common investors while facilitating market liquidity. On that note, by allowing the price per share to drop, Kotak Mahindra Bank will be able to upgrade ease of access without affecting their profits, net worth, and share proportions

Strategically, the stock split reflects management’s confidence in the bank’s long-term fundamentals and growth visibility. Improved liquidity and broader investor participation can support healthier price discovery in the market over time. While the split itself does not create immediate value, it aligns with Kotak Mahindra Bank’s focus on shareholder-friendly capital actions and reinforces its positioning as a stable, long-term compounder in the Indian banking sector.

The Net interest income for the bank stands at Rs 7,311 crores in Q2 FY26 compared to Q2 FY25 NII of Rs 7,020 crores, up by about 4 per cent YoY. However, the net profit stood at Rs 3,253 crore in Q2 FY26, down from Rs 3,344 crore in Q2 FY25.

 The PAT contribution mix in H1 FY26 highlights Kotak’s dependence on its core bank operations, as the contribution from the Bank & Other Lending-related entities stands at around 77%, marking the resilience of the loan-based business. Capital markets come second, contributing about 10%, marking their stable performance despite the cyclic nature of the markets, while asset management stands third, contributing around 9%.

Insurance contributes 4% towards the mix.

Its AUM stood at Rs 760,598 crore as of September 30, 2025, underlining a diversified asset mix anchored by domestic markets. Equity in domestic mutual funds comprises the largest share of ₨ 362,694 crore, underlining strong retail and institutional participation in equity products. Supporting this is domestic MF debt AUM of Rs 196,886 crore, adding stability and balance to the overall portfolio. Insurance AUM of Rs 91,230 crore adds a long-term, sticky component. 

Offshore funds contribute Rs 51,600 crore, and alternate assets represent Rs 44,985 crore, showing a growing presence in higher yield or global strategies. NPS and PMS assets remain much smaller at Rs 13,203 crore but are strategic. Overall, the AUM mix brings out Kotak’s strength across asset classes.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Kotak Mahindra Bank stock split: How many shares will investors receive? appeared first on Trade Brains.