Kotak Bank shares entered the spotlight on Wednesday, January 14, as the lender began trading adjusted for its stock split announced earlier. The implementation of this corporate action marks a significant development for existing and prospective shareholders.

Stock Split Details and Impact

The bank is executing a 1:5 stock split, dividing one share of ₹5 face value into five shares of ₹1 each. The record date for this stock split was set for January 14, determining shareholder eligibility.

Shareholders who held Kotak Mahindra Bank shares in their demat accounts as of Tuesday's closing are eligible for the stock split. Those purchasing shares from Wednesday onward will buy post-adjustment shares at the revised price.

Practical Example of Split Impact

To illustrate the split's effect, an investor holding 100 shares of Kotak Bank with ₹5 face value each will see those shares convert to 500 shares with ₹1 face value each. The total value remains unchanged as the stock price adjusts proportionally to the split ratio, ensuring no dilution of shareholder wealth.

Historical Corporate Actions

This represents Kotak Mahindra Bank's second stock split since 2010. The bank's previous corporate actions include:

• 2010: Split one ₹10 share into two ₹5 shares
• 2015: Issued bonus shares in 1:1 ratio, providing one free share for every share held
• 2025: Current 1:5 split from ₹5 to ₹1 face value

Upcoming Financial Results and Fundraising

Kotak Mahindra Bank is scheduled to announce its third quarter results on Saturday, January 24. Alongside the quarterly results, the lender will consider a proposal to raise funds through non-convertible debentures (NCDs), indicating potential expansion or refinancing activities.

Recent Stock Performance

Shares of Kotak Mahindra Bank closed little changed on Tuesday at ₹2,132.10. The stock has demonstrated strong performance with a 22.00% gain over the past month, reflecting positive investor sentiment ahead of the stock split implementation.

Kotak Bank has set January 14, 2026, as the record date for its 5:1 stock split, making today the final opportunity for investors to purchase shares and qualify for the split benefit. The private sector lender announced this stock subdivision in December, which will significantly impact shareholding structure.

Stock Split Details

The bank announced a 5-for-1 stock split, also known as subdivision of equity shares, where one existing equity share will be divided into five shares. This corporate action reduces the face value per share while proportionally increasing the number of shares held by investors.

Q3 Business Performance

Kotak Mahindra Bank released its Q3 business update on January 5, showcasing robust growth across key metrics. The bank demonstrated strong lending growth and deposit mobilization despite challenging market conditions.

On a quarter-on-quarter basis, net advances increased 3.8% from ₹4,62,688 crore as of September 30, 2025, while CASA deposits remained largely flat sequentially.

Share Price Performance and Target

Kotak Mahindra Bank shares closed at ₹2,132.00 on Tuesday, registering a marginal gain of 0.061%. However, the stock has declined approximately 2.26% over the past 30 trading sessions, reflecting recent market volatility.

Motilal Oswal Financial Services maintains a BUY rating on the stock with a target price of ₹2,500 per share. The brokerage expects the bank to deliver strong return ratios over the medium term, projecting Return on Assets at 2% and Return on Equity at 12.7% by FY27E.

The brokerage's optimistic outlook is based on the bank's expected ability to deliver robust return ratios and maintain strong operational performance across its diversified business segments.