Kotak Mahindra Bank Board to Mull Stock Split Proposal on November 21

Mahindra Bank announced on Friday that its board of directors will convene next week to evaluate a potential stock split, aiming to enhance liquidity and accessibility for investors. In a regulatory filing to the stock exchanges, the private sector lender stated that the board meeting, scheduled for November 21, 2025, will deliberate on the sub-division of its equity shares. Currently, each fully paid-up share carries a face value of Rs 5. The bank clarified that the specific ratio and manner of the proposed split will be finalized by the board during the meeting. This development comes amid the bank's recent financial performance. For the second quarter of fiscal year 2026 (Q2FY26), Kotak Mahindra reported a standalone net profit of Rs 3,253 crore, marking a 2.7% decline year-on-year from Rs 3,344 crore in Q2FY25. On a positive note, the bank's Net Interest Income (NII) rose 4% to Rs 7,311 crore in Q2FY26, compared to Rs 7,020 crore in the corresponding period last year. The Net Interest Margin (NIM) stood at 4.54%, while the cost of funds was recorded at 4.70% for the quarter. Stock splits are often pursued by companies to make shares more affordable for retail investors, potentially boosting trading volumes without altering the overall market capitalization. Investors will closely watch the board's decision, as it could signal confidence in the bank's growth trajectory despite the quarterly profit dip. Kotak Mahindra Bank's shares have been under scrutiny in recent quarters due to regulatory pressures and margin challenges, but the proposed split could provide a fresh impetus to shareholder sentiment.