SBI, HDFC Bank and ICICI continue as RBI's Systemically Important Banks

The Reserve Bank of India (RBI) has announced that it has continued to identify the State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) for the 2024 list, with the same categorization as the previous year.

These banks must maintain an additional Common Equity Tier 1 (CET1) requirement alongside the capital conservation buffer.

Established by the RBI in 2014 and updated in December 2023, the D-SIB framework mandates that systematically important Banks meet extra CET1 requirements based on their assigned bucket, which reflects their Systemic Importance Score (SIS).

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The RBI's D-SIB framework places each bank in specific buckets, which determine the additional CET1 requirement based on the bank's systemic importance:

Bucket 4: SBI – 0.80% CET1 (effective April 1, 2025; up to March 31, 2025, it remains at 0.60%)

Bucket 2: HDFC Bank – 0.40% CET1 (effective April 1, 2025; up to March 31, 2025, it remains at 0.20%)

Bucket 1: ICICI Bank – 0.20% CET1

 

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