Kotak Mahindra Bank has announced a major stock split to mark its 40th Foundation Day, with the Board approving the sub-division of its equity shares to make them more affordable and enhance market liquidity. The decision, taken at a board meeting in Mumbai, will see each existing equity share of face value ₹5 split into five shares of face value ₹1 each, subject to regulatory and statutory clearances.
Part-time Chairman C S Rajan said the milestone reflects Kotak’s long-term commitment to shareholder value. “To encourage wider investor participation by making the Bank’s equity shares more affordable and liquid, the Board has… decided to sub-divide the existing equity shares,” he said. Managing Director and CEO Ashok Vaswani added that the move aligns with Kotak’s vision of inclusivity and growth.
A key amendment to the Bank’s Memorandum of Association has also been cleared to reflect the revised capital structure post-split. Kotak expects the entire approval and implementation process to be completed within two months of receiving final clearances from RBI and other authorities. In Kolkata, the stock split is likely to draw strong interest from small and medium retail investors across eastern India, where Kotak has a growing customer base. Analysts noted that lower entry prices often attract first-time investors from active urban clusters such as Kolkata’s Dalhousie and Salt Lake trading circles.