RBI Names SBI, HDFC, ICICI as Key Systemic Banks

The Reserve Bank of India has designated State Bank of India, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs). This means these banks must maintain higher Common Equity Tier 1 (CET1) capital. The new D-SIB surcharge will be applied as per bank classification post-March 2025.

The Reserve Bank of India has reaffirmed the status of State Bank of India, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs), which mandates them to hold additional capital buffers to hedge against financial instability.

The announcement, made on Wednesday, highlights SBI's requirement to keep its CET1 buffers at an additional 0.80 percent, placing it in bucket 4. HDFC Bank, classified under bucket 2, needs to maintain an extra 0.40 percent CET1 as the largest private lender continues its crucial role in the sector.

The Central Bank listed ICICI Bank in bucket 1, obliging it to maintain an additional CET1 of 0.20 percent. These classifications align with RBI's framework, first introduced in 2014 as a safeguard for systemic stability.

(With inputs from agencies.)