Kotak Mahindra Bank stock split explained: Why share price may see sharp fall today
Kotak Bank stock split: This would be the private lender’s second stock split. The earlier split took place in September 2010, when the face value of the shares was reduced to Rs 5 each from Rs 10.
- Jan 14, 2026,
- Updated Jan 14, 2026 9:07 AM IST
Kotak Mahindra Bank Ltd (KMB) is set to see a sharp adjustment in its share price today, January 14, as the stock turns ex-date for its stock split. Under the corporate action, each equity share with a face value of Rs 5 would be subdivided into five equity shares of face value Re 1 each. This would be the private lender’s second stock split. The earlier split took place in September 2010, when the face value of the shares was reduced to Rs 5 each from Rs 10, data available with corporate database AceEquity suggested.
Today is the record date for determining shareholders eligible for the subdivision. Existing investors need not worry. The ones holding Kotak Mahindra Bank share would receive four additional shares, taking the total holding to five shares post-split.
The stock split is expected to lead to a proportionate price adjustment, as one share converts into five. Such corporate actions typically improve liquidity and affordability, making the stock more accessible and potentially encouraging broader retail participation.
Shares of Kotak Mahindra Bank Ltd settled at Rs 2,132.10 apiece on BSE. The stock is up 9.56 per cent in the past one year.
BNP Paribas in a note this week said Kotak Bank's CASA is among the best-in-class, at 38 per cent of NDTL as of FY25. While the bank's initial deposit build up had used high rates as a hook, current SA rates are only at a minor premium to those of major private banks. KMB's asset-quality performance over the last decade is bested only by HDFC Bank among India's large banks, it said.
"Capital productivity implications of low leverage (core leverage has dropped to 6.1 times from 8 times pre-Covid) has been the central investor concern. The only way to gear up this capital-laden balance sheet to achieve high capital productivity (core ROE of over 18 per cent) is to expand its asset base faster than interim accruals," it said on January 12 adding that asset growth remains key to a rerating.
Stock splits and bonus issues may appear similar, but they serve different purposes. A stock split breaks existing shares into smaller units to improve liquidity by lowering the face value, without changing the company’s share capital or reserves. Dividend per share is adjusted proportionately after a split.
A bonus issue, by contrast, involves the issuance of additional free shares to shareholders from accumulated earnings, with no change in face value. Kotak Mahindra Bank last came out with a bonus issue in 2015 (1:1 ratio), Ace Equity suggested.
In a 1:5 stock split, each share is divided into five and dividend entitlement reduces in the same proportion. In a bonus issue, dividend entitlement remains unchanged. Shares arising from a stock split are usually credited to investors’ demat accounts within one to two working days after the record date.
Meanwhile, Ajmera Realty & Infra India Ltd will also see its stock getting split today from face value of Rs 10 each into shares with face value of Rs 2 each.
Kotak Mahindra Bank Ltd (KMB) is set to see a sharp adjustment in its share price today, January 14, as the stock turns ex-date for its stock split. Under the corporate action, each equity share with a face value of Rs 5 would be subdivided into five equity shares of face value Re 1 each. This would be the private lender’s second stock split. The earlier split took place in September 2010, when the face value of the shares was reduced to Rs 5 each from Rs 10, data available with corporate database AceEquity suggested.
Today is the record date for determining shareholders eligible for the subdivision. Existing investors need not worry. The ones holding Kotak Mahindra Bank share would receive four additional shares, taking the total holding to five shares post-split.
The stock split is expected to lead to a proportionate price adjustment, as one share converts into five. Such corporate actions typically improve liquidity and affordability, making the stock more accessible and potentially encouraging broader retail participation.
Shares of Kotak Mahindra Bank Ltd settled at Rs 2,132.10 apiece on BSE. The stock is up 9.56 per cent in the past one year.
BNP Paribas in a note this week said Kotak Bank's CASA is among the best-in-class, at 38 per cent of NDTL as of FY25. While the bank's initial deposit build up had used high rates as a hook, current SA rates are only at a minor premium to those of major private banks. KMB's asset-quality performance over the last decade is bested only by HDFC Bank among India's large banks, it said.
"Capital productivity implications of low leverage (core leverage has dropped to 6.1 times from 8 times pre-Covid) has been the central investor concern. The only way to gear up this capital-laden balance sheet to achieve high capital productivity (core ROE of over 18 per cent) is to expand its asset base faster than interim accruals," it said on January 12 adding that asset growth remains key to a rerating.
Stock splits and bonus issues may appear similar, but they serve different purposes. A stock split breaks existing shares into smaller units to improve liquidity by lowering the face value, without changing the company’s share capital or reserves. Dividend per share is adjusted proportionately after a split.
A bonus issue, by contrast, involves the issuance of additional free shares to shareholders from accumulated earnings, with no change in face value. Kotak Mahindra Bank last came out with a bonus issue in 2015 (1:1 ratio), Ace Equity suggested.
In a 1:5 stock split, each share is divided into five and dividend entitlement reduces in the same proportion. In a bonus issue, dividend entitlement remains unchanged. Shares arising from a stock split are usually credited to investors’ demat accounts within one to two working days after the record date.
Meanwhile, Ajmera Realty & Infra India Ltd will also see its stock getting split today from face value of Rs 10 each into shares with face value of Rs 2 each.