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Kotak's low payout drags RoE

Mint Bangalore

|

October 28, 2025

Kotak Mahindra Bank Ltd's customer assets rose 13% year-on-year to ₹5.09 trillion in the September quarter (Q2FY26).

- Manish Jha feedback@livemint.com

Yet, its common equity tier (CET)-I ratio remains a hefty 20.9%, only marginally lower than 21.5% in Q2FY25. CET-I, which includes core equity capital and retained earnings, is higher than that of ICICI Bank Ltd (15%) and HDFC Bank Ltd (17%). This excess capital is a key reason Kotak’s return on average equity (RoAE) lags peers—at 10.4% versus a minimum of 14% for HDFC Bank, ICICI Bank, and State Bank of India Ltd (SBI).

During the earnings call, Kotak Mahindra Bank CEO Ashok Vaswani pointed out that Indian banks are not allowed to do buybacks under the Reserve Bank of India's (RBI) rules— an avenue that could have improved RoAE.

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Advent exits Aditya Birla Cap, nets 2.5x

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India, EU to push trade talks on steel, carbon tax issues

India and the European Union (EU) have agreed to continue discussions on issues pertaining to steel, auto, and carbon tax, as these areas carry higher sensitivities, under the proposed free trade agreement, the commerce ministry said on Wednesday.

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Varun Beverages surges 9% on Carlsberg deal despite weak Q2

Shares of PepsiCo bottler Varun Beverages surged over 9% on Wednesday after the company announced an exclusive distribution partnership with Carlsberg Breweries for select southern African markets.

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'Akasa will look at IPO in next 2-5 yrs'

Akasa Air will look at an initial public offering (IPO) in the next two to five years, its founder and chief executive officer Vinay Dube said on Wednesday and asserted that the airline will not chase “growth for the sake of growth”.

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Govt preps debt recast plan for discoms

Drugmakers face bans for fake claims as govt set to tweak rules

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Bougatsa is a Greek breakfast worth waking for

This custard-filled treat, which dates back to the time of the Byzantine Empire, is a delicious slice of Athens life

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Silver premiums fall as demand eases

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