Kotak Mahindra Bank shares down 80%? THIS is the reason

Kotak Mahindra Bank shares saw a sharp fall of over 80 per cent in early trade on Wednesday, hitting a day’s low of Rs 425.05 on the BSE. The steep decline, however, was not linked to any deterioration in the bank’s business or financial performance.

The fall was purely technical, as the stock traded ex-split following the lender’s 5:1 stock split. As a result, the share price adjusted lower to reflect the increased number of shares.

1:5 Stock Split

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Kotak Mahindra Bank shares turned ex-split in the ratio of 1:5, meaning one existing share was subdivided into five shares. On the NSE, the stock opened at around Rs 426 per share, compared with its previous close of Rs 2,132.60. On the BSE, the shares opened at Rs 425.05 and slipped as much as 0.72 per cent to an intraday low of Rs 422.

The bank’s board had approved the stock split in November last year. Under the proposal, one equity share with a face value of Rs 5 was split into five equity shares with a face value of Rs 1 each.

A 1:5 stock split increases the number of shares in circulation and lowers the share price proportionately. However, the overall investment value and shareholder ownership remain unchanged, as the adjustment is only mathematical.

This is not the first time Kotak Mahindra Bank has undertaken a stock split. The lender last split its shares in 2015, when it carried out a 2:1 subdivision.

Kotak Mahindra Bank Q3 update

In its business update for the quarter ended December 31, 2025, Kotak Mahindra Bank reported steady growth in both advances and deposits.

Net advances rose 16 per cent year-on-year to Rs 4.80 lakh crore in Q3 FY26, compared with Rs 4.13 lakh crore in the year-ago period. On a sequential basis, advances grew 3.8 per cent. Average net advances increased 16.2 per cent year-on-year to Rs 4.65 lakh crore and rose 4 per cent quarter-on-quarter.

Total deposits stood at Rs 5.42 lakh crore in Q3 FY26, up 14.6 per cent from Rs 4.73 lakh crore a year earlier. On a quarter-on-quarter basis, deposits grew 2.6 per cent.