Kotak Mahindra Bank Ltd.'s board of directors will consider the sub-division or split of existing fully paid-up equity shares, according to an exchange filing on Friday.
The bank's board will meet on Nov. 21, to consider the split of shares having the face value of Rs 5 apiece.
In the past, the bank has split its shares at least five times in the years 2000, 2004, 2005, 2010, and 2015.
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly. While the number of shares increases, the total investment value remains unchanged.
Kotak Mahindra Q2 Results
Kotak Mahindra Bank's net interest income or NII for the second quarter grew by 4% year-over-year, rising to Rs 7,311 crore from Rs 7,020 crore in the same period last year.
The bank's operating profit also saw a modest increase of 3.3%, reaching Rs 5,268 crore compared to Rs 5,099 crore previously. However, the bank's provisions saw a sharp increase, jumping by 43.5% year-on-year to Rs 947 crore from Rs 660 crore.
Consequently, the bank reported a Net Profit of Rs 3,253 crore, which was a decline of 2.7% compared to Rs 3,344 crore in the year-ago quarter.
The bank's total deposits increased by 14.5% to stand at Rs 5.28 lakh crore. The CASA or the Current Account Savings Account ratio for the quarter was 42.3%. This showed a growth compared to 40.9% in the preceding quarter.
Further, Kotak Bank's Net Interest Margin NIM for the period was 4.54%, a slight contraction from 4.65% recorded in the previous quarter.
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