Kotak Mahindra Bank Announces 5:1 Stock Split
Kotak Mahindra Bank has approved a 5:1 stock split, its first since 2010, making shares more affordable for retail investors. The announcement coincides with the 40th anniversary of the bank’s founding as a non-banking finance company.
Key Details of the Stock Split
- Each Rs 5 face value share will be subdivided into five shares of Re 1 each
- Last stock split occurred in 2010 (Rs 10 to Rs 5)
- Bonus shares issued in 1:1 ratio in 2015
- Shares closed at Rs 2,086.50, down 0.51% on announcement day
Founder’s Milestone Reflection
“Forty years ago today, I started a company (Kotak Mahindra Finance) with Rs 30 lakh capital, in a 300 sqft office in Fort, Bombay.”
Uday Kotak launched his finance firm in 1985, which transformed into Kotak Mahindra Bank in 2003 – becoming the first non-banking company to make this transition. He led the bank for nearly 38 years before resigning from executive roles in November 2023, four months ahead of schedule.
Recent Leadership and Performance
The RBI approved Ashok Vaswani as CEO in April 2024 while the bank faced regulatory scrutiny that resulted in bans on credit card and digital banking services. Kotak’s son Jay serves as vice-president and co-head of Kotak811 digital banking.
Despite recent challenges, Kotak Mahindra Bank shares have gained 17% year-to-date, outperforming HDFC Bank (13%) and ICICI Bank (7%). However, September quarter standalone net profit fell 2.7% to Rs 3,253 crore due to increased provisions for retail and microfinance segments.
According to Forbes, Uday Kotak’s net worth stands at $15 billion as of November 2025, making him Asia’s richest banker and ranking 170th globally.
