Kotak Mahindra Bank shares fall over 80% – Here’s the real reason

Mumbai | January 14

Kotak Mahindra Bank shares saw a sharp notional drop on Wednesday as the stock traded ex-split following its recently approved 5:1 stock split.

Stock trades ex-split

Kotak Mahindra Bank’s shares turned ex-split today following its 1:5 stock split. This means each existing share of face value ₹5 has been divided into five shares of ₹1 each.

The stock opened at around ₹426 per share on the NSE, down from its previous close of ₹2,132.60. During the day, it touched a day’s low of ₹418.8.

Despite the steep fall in quoted price, the total investment value for shareholders remains unchanged as the move is only mathematical in nature.

Why companies go for stock splits

A stock split increases the number of shares in circulation while proportionately reducing the price per share. This move typically improves liquidity, enhances affordability for retail investors, and broadens participation.

Kotak Mahindra Bank’s board had approved the proposal in November 2025, aiming to make its stock more affordable for small investors. This is the second time the lender has undertaken a stock split. The lender previously split its shares in 2015, when it executed a 2:1 subdivision.

Business update: steady growth in Q3 FY26

For the December quarter, Kotak Mahindra Bank reported steady growth across key metrics:

• Net advances: ₹4.80 lakh crore, up 16% YoY and 3.8% QoQ.
• Average net advances: ₹4.65 lakh crore, rising 16.2% YoY.
• Total deposits: ₹5.42 lakh crore, up 14.6% YoY and 2.6% QoQ.

The consistent rise in advances and deposits indicates that the lender’s core business momentum remains strong.

Investor takeaway

The 80% decline is purely mathematical, reflecting the 1:5 split ratio.
The stock split only adjusted the price to account for the higher number of shares; the bank’s fundamentals and market value remain unchanged.

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