The Reserve Bank of India (RBI) on Wednesday announced that it has continued to identify 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 systemically important banks meet extra CET1 requirements based on their assigned bucket, which reflects their Systemic Importance Score (SIS).
Foreign banks classified as Global Systemically Important Banks (G-SIBs) must also hold additional CET1 in India, proportionate to their risk-weighted assets in the country.
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
HDFC Bank shares were down 0.24 per cent, trading at Rs 1,714.00 apiece on Wednesday as of 10.55 AM, while SBI and ICICI shares were trading at Rs 819.90 and Rs 1,265.65, down 0.82 and 0.39 per cent respectively.
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 systemically important banks meet extra CET1 requirements based on their assigned bucket, which reflects their Systemic Importance Score (SIS).
Foreign banks classified as Global Systemically Important Banks (G-SIBs) must also hold additional CET1 in India, proportionate to their risk-weighted assets in the country.
Bank-Specific Requirements
The RBI's D-SIB framework places each bank in specific buckets, which determines 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
HDFC Bank shares were down 0.24 per cent, trading at Rs 1,714.00 apiece on Wednesday as of 10.55 AM, while SBI and ICICI shares were trading at Rs 819.90 and Rs 1,265.65, down 0.82 and 0.39 per cent respectively.
Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
