Mumbai, 29 December 2025 – In a landmark move to mark its 40th anniversary, India’s Kotak Mahindra Bank has declared a five-for-one stock split, the first such action since September 2010. The announcement, made on Friday, is aimed at making the bank’s shares more affordable and accessible, particularly for retail investors, while also enhancing liquidity in the market.
The proposed split has been welcomed by investors, with Kotak Mahindra Bank’s shares rising approximately 2% on Monday following the news. Despite this initial surge, the stock experienced a minor decline by the end of the week, closing at ₹2,087.80 on Friday, down 0.52%.
The decision aligns with a wider trend among India’s leading banks. Several prominent financial institutions have undertaken similar stock splits in recent years to attract a broader investor base. For example, HDFC Bank conducted its last share split in 2019, while ICICI Bank undertook a split in 2014. Analysts suggest that such measures generally improve stock liquidity and allow smaller investors to participate more actively in the equity market.
Kotak Mahindra Bank has demonstrated strong performance in 2025, with its stock appreciating roughly 17% year-to-date. This outperformance surpasses that of HDFC Bank, up 13%, and ICICI Bank, which has gained 7% over the same period. Meanwhile, the Nifty Bank Index, a benchmark reflecting the performance of major banking stocks, has risen 16% so far this year.
Stock Performance and Split History of Major Indian Banks
| Company | Last Stock Split | Year-to-Date Share Price Change |
|---|---|---|
| Kotak Mahindra Bank | Proposed Nov 2025 | +17% |
| HDFC Bank | 2019 | +13% |
| ICICI Bank | 2014 | +7% |
| Nifty Bank Index | – | +16% |
The bank’s management emphasised that the split is designed to enhance participation among retail investors and strengthen the market’s overall liquidity. Speaking to investors, a senior official noted, “As we celebrate four decades of operations, we are committed to broadening our shareholder base and making our equity more accessible to every investor.”
Financial analysts have also highlighted that stock splits often lead to renewed investor interest and higher trading volumes. Given Kotak Mahindra Bank’s robust performance and strategic positioning in the Indian banking sector, the move is expected to bolster the stock’s appeal and further consolidate its retail investor base.
This initiative comes at a time when Indian banks are actively seeking to balance strong corporate performance with broader inclusion of smaller investors, reflecting a dynamic trend in the country’s equity markets.