Mumbai, Nov 13: The Reserve Bank of India (RBI) has once again designated State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) for 2024. Released on Wednesday, the list underscores the banks’ critical role in India’s financial stability.
Banks classified as D-SIBs are required to maintain higher Common Equity Tier 1 (CET1) capital in addition to the capital conservation buffer, based on their assigned risk bucket. SBI, the country’s largest lender, remains in bucket 4, necessitating an additional CET1 of 0.80%. HDFC Bank, the largest private lender, stays in bucket 2, requiring a 0.40% CET1 surcharge. Meanwhile, ICICI Bank, in bucket 1, must maintain an additional 0.20% CET1.
The increased CET1 requirements for SBI and HDFC Bank will take effect from April 1, 2025, with interim surcharges of 0.60% for SBI and 0.20% for HDFC Bank until March 31, 2025. These classifications are based on data as of March 31, 2024.
The D-SIB framework was introduced by the RBI in 2014, and SBI and ICICI Bank were the first to be classified as D-SIBs in 2015 and 2016, with HDFC Bank added in 2017.
