Private lender Kotak Mahindra Bank’s board on Friday, November 21, approved a stock split in the ratio of 1:5. This means investors will get five shares of Kotak Bank for every one share held by them on the record date.

This marks the first stock split by the lender in 15 years. Before this, Kotak Bank had announced a subdivision of shares in a 1:2 ratio in 2010. The corporate action coincides with the 40th Foundation Day of the private sector bank, founded by Uday Kotak.

“The Board of Directors of the Bank have, at their meeting held today on the occasion of 40th Foundation Day, i.e., on November 21, 2025, inter alia, considered and approved sub-division (split) of the existing equity shares of the Bank, as follows: Sub-division (split) of 1 (One) existing equity share of the Bank having face value of Rs. 5/- (Rupees Five only) each, fully paid-up, into 5 (Five) equity shares of the Bank having face value of Re. 1/- (Rupee One only) each, fully paid-up,” the lender said in an exchange filing today.

Explaining the rationale behind the move, Kotak Bank said it aims to make the bank’s equity shares more affordable and enhance their liquidity for increased market participation by investors, especially retail investors.

Kotak Bank’s expected time of completion is tentatively within 2 months from receipt of all the regulatory and statutory approvals and the members’ approval.

The lender is yet to announce the stock split record date.