Kotak Bank Stock Split: Record Date Set for 1:5 Share Division

Introduction

Kotak Mahindra Bank, one of India's leading private sector lenders, has announced January 14, 2026, as the record date for its previously approved 1:5 stock split. This corporate action, aimed at enhancing share liquidity and making the stock more accessible to retail investors, will see each existing equity share sub-divided into five shares. The decision follows overwhelming approval from shareholders and necessary regulatory clearances.

Details of the Stock Split

The board of directors approved the sub-division of one equity share with a face value of ₹5 into five equity shares, each with a face value of ₹1. This 1:5 split ratio means that for every one share an investor holds on the record date, they will receive five shares. While the number of shares held by an investor will increase fivefold, the total value of their investment will remain unchanged immediately after the split, as the stock price is expected to adjust proportionally.

Record Date and Shareholder Eligibility

The bank has officially fixed Wednesday, January 14, 2026, as the record date to determine the shareholders eligible for the share sub-division. Investors who hold Kotak Mahindra Bank shares in their demat accounts at the close of trading on January 13, 2026, will be entitled to the benefits of the split. Consequently, those who purchase the stock on or after the record date of January 14 will not be eligible for the split shares.

Rationale and Strategic Goals

Kotak Mahindra Bank stated that the primary objective of the stock split is to enhance the liquidity of its equity shares in the capital market. By reducing the per-share price, the stock becomes more affordable for a broader base of investors, particularly retail participants. This move is expected to encourage wider ownership and increase trading volumes. The announcement was strategically made on the bank's 40th Foundation Day, underscoring its long-term commitment to creating shareholder value.

The Approval Process

The proposal was first approved by the bank's Board of Directors on November 21, 2025. Following this, it was subject to shareholder approval, which was obtained through a postal ballot process conducted between November 27 and December 26, 2025. The resolution for the share sub-division received overwhelming support, with 99.99% of votes cast in favour, indicating strong investor confidence in the bank's strategic decision.

Impact on Capital Structure

The stock split will alter the bank's share capital structure but will not affect the total authorized capital. The face value per share will decrease, while the number of outstanding shares will increase.

Historical Corporate Actions

This is not the first time Kotak Mahindra Bank has undertaken such a corporate action. The bank has a history of rewarding its shareholders. The last stock split occurred in 2010 when the face value was reduced from ₹10 to ₹5. Additionally, the bank issued bonus shares in a 1:1 ratio in July 2015. The lender also has a strong dividend track record, having paid dividends in 10 of the last 11 fiscal years.

Market Performance and Analyst Outlook

Shares of Kotak Mahindra Bank have demonstrated positive performance, rising nearly 21% in 2025. On the day of the initial announcement, the stock closed at ₹2,087.80. The analyst community remains largely positive on the stock. Out of 43 analysts tracking the company, 29 have a 'Buy' rating, 10 recommend a 'Hold', and only four suggest a 'Sell'. The consensus indicates confidence in the bank's fundamentals and growth prospects.

Conclusion

Kotak Mahindra Bank's 1:5 stock split, with a record date of January 14, 2026, is a significant move to improve market accessibility and liquidity. Backed by strong shareholder approval and a clear strategic rationale, the action is poised to benefit retail investors and potentially increase trading activity. The entire process is expected to be completed within two months of receiving all regulatory approvals, marking another milestone in the bank's four-decade journey.