Indian Banks Among Asia-Pacific’s Best Capitalised Lenders, Says S&P Global

According to the recent data released by S&P Global Market Intelligence multiple Indian banks ranks among the best capitalised lenders in the Asia-Pacific region. The Kotak Mahindra Bank is leading the list as it recorded the highest leverage ratio among major Asia-Pacific banks with assets exceeding the value of $100 billion.

Indian Banks Shine in the Asia-Pacific Capital Strength Rankings

The latest S&P Global Market Intelligence analysis examined the several banks across the Asia-Pacific region with the total assets of at least $100 billion as of March 31, 2026.

The study found that the several Indian private sector banks occupies the top positions in terms of leverage ratio, it is the key measure used to assess the bank’s capital strength.

Among all the banks who are included in the study, Kotak Mahindra Bank emerged as the leader and followed by the other major Indian lenders such as HDFC Bank, ICICI Bank and Axis Bank.

What is a Bank Leverage Ratio?

The leverage ratio is an important financial indicator which is used to measure the bank’s capital strength relative to its total assets.

Formula

Leverage Ratio = Tier 1 Capital/Total Exposure

A higher leverage ratio generally indicates that the bank has a stronger capital base available to absorb the potential losses.

Unlike in many other industries, a higher leverage ratio in banking is considered as the positive indicator because it reflects the,

• Stronger capitalization
• Greater financial resilience
• Better ability to withstand economic shocks
• Lower systemic risk

Therefore, the banks with the higher leverage ratios are often viewed as more financially stable.

Kotak Mahindra Bank Tops the Region

Among the Asia-Pacific lenders with assets above the $100 billion, Kotak Mahindra Bank had reported the highest leverage ratio of 16.56% as of March 31, 2026.

The bank’s leverage ratio increased by the 6 basis points (bps) compared to the last year and further strengthening its position.

This achievement reflects the bank’s conservative capital management strategy and the robust balance sheet.

Other Indian Banks Also Feature Among Top Performers

The report also highlights that the India’s banking strength is not limited to one institution.

There are several major private-sector banks also recorded the impressive leverage ratios,

Bank Leverage Ratio (%)

• Kotak Mahindra Bank 16.56
• HDFC Bank 11.14
• ICICI Bank 10.84
• Axis Bank 9.28

These figures place the Indian lenders among the strongest-capitalized institutions in the region.

Union Bank of India Records Fastest Improvement

Among all the banks analyzed in the study the Union Bank of India has recorded the sharpest year on year increase in leverage ratio.

Its leverage ratio rose by the 69 basis points (bps) year on year, from the previous levels to 7.72% as of March 31, 2026

The increase indicates the stronger capital adequacy and reflects efforts by the public-sector banks to improve their financial health through capital infusion, improved profitability and lower stressed assets.

Australian Banks Report Lower Leverage Ratios

At the opposite end of the rankings, there are several major Australian banks has recorded the lowest leverage ratios among institutions covered in the study.

These included the,

• National Australia Bank
• Australia and New Zealand Banking Group
• Commonwealth Bank of Australia

Each of these institutions had reported the leverage ratios below 5%.

Why Indian Banks Are Strengthening Their Capital Base

Over the last decade, the Indian banks have significantly improved their capital positions due to the several factors.

Key Drivers

• Stricter regulatory supervision by the Reserve Bank of India (RBI)
• Implementation of the Basel III capital norms
• Improved the asset quality and lower non-performing assets (NPAs)
• Strong profitability growth
• Regular capital raising by banks
• Better risk management practices

These reforms have enhanced the resilience of the India’s banking system and increased investor confidence.