Kotak Bank has received a significant GST demand order from Rajasthan tax authorities, totaling ₹2.33 crores. The bank disclosed this development through a regulatory filing under SEBI Regulation 30 on December 31, 2025.

GST Demand Order Details

The order, dated December 29, 2025, was issued by the Deputy Commissioner of State Tax, Business Audit Wing, Rajasthan. The demand comprises multiple components under the Rajasthan Goods and Services Tax Act, 2017 and Central Goods and Services Act, 2017.

Background and Timeline

The GST demand has arisen due to disallowance of input tax credit that the bank had availed during the financial year 2021-22. The bank's Company Secretary received the order information on December 31, 2025, at 3:21 p.m. IST, and promptly made the regulatory disclosure.

Bank's Response Strategy

Kotak Mahindra Bank Limited has expressed confidence in its position regarding this matter. The bank stated that it believes it has adequate grounds to support its stance and intends to file an appeal against the order under applicable laws. The bank has indicated that the financial impact would be limited to the amount of levy payable under the aforementioned order.

Regulatory Compliance

The bank has fulfilled its disclosure obligations by making this information available on its official website and filing the necessary intimation with stock exchanges. This transparency ensures that investors and stakeholders remain informed about material developments that could impact the bank's operations.

Kotak Mahindra Bank has sent official communication to shareholders holding physical shares, notifying them about the mandatory conversion to dematerialized form before the January 14, 2026 record date for its upcoming 1:5 stock split. The bank has informed physical shareholders that the new sub-divided shares will be issued exclusively in demat form as per regulatory requirements.

Stock Split Details and Record Date

The bank has officially fixed Wednesday, January 14, 2026, as the record date for its forthcoming stock split. Shareholders who hold the bank's shares in their demat accounts as of the close of trading on January 13, 2026 will be eligible for the corporate action.

Physical Shareholders Notification

In its latest regulatory filing, the bank has communicated with physical shareholders through email and ordinary post, explaining the mandatory demat conversion requirement. According to Regulation 39(2A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the bank will issue, credit and maintain the sub-divided equity shares exclusively in dematerialized form.

For shareholders who do not convert to demat form before the record date, the bank will maintain the sub-divided shares in a separate Demat Suspense Escrow Pool Account in compliance with prevailing regulations. These shareholders will need to claim their equity shares from the bank or its Registrar and Transfer Agent, KFin Technologies Limited, by submitting requisite documents.

Historical Corporate Actions

This upcoming split marks a significant corporate action for Kotak Mahindra Bank, which last undertook a share split more than 15 years ago. The bank has a track record of implementing shareholder-friendly corporate actions:

Regulatory Compliance and KYC Requirements

The bank has also highlighted SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/91, which mandates physical shareholders to update their PAN, contact details, bank account details and specimen signature for their respective folios. The requisite KYC forms can be downloaded from KFin Technologies Limited's website or obtained by contacting their office in Hyderabad.

For any queries or assistance regarding the demat conversion process, shareholders can contact KFin Technologies Limited at their Selenium Tower office in Gachibowli, Hyderabad, or reach out via email at einward.ris@kfintech.com .