look news india
HDFC Bank: The Reserve Bank of India (RBI) has again included State Bank of India (SBI), HDFC Bank and ICICI Bank in the list of domestic systemically important banks (D-SIBs). RBI released the list of D-SIBs on Wednesday. To be included in this list, lenders are required to maintain high ‘Common Equity Tier 1’ (CET 1) in addition to capital conservation reserves as per the ‘bucket’ under which it is classified.
HDFC Bank placed in ‘Bucket 2’
According to the list, State Bank of India (SBI) still remains in ‘Bucket 4’, requiring the country’s largest lender to maintain an additional CET-1 of 0.80 per cent. HDFC Bank, the largest private sector lender, has been placed in ‘Bucket 2’, under which it will have to maintain 0.40 per cent higher CET-1. The central bank said that the higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 1, 2025. ‘Therefore, the D-SIB surcharge applicable to SBI and HDFC Bank till March 31, 2025 will be 0.60 per cent and 0.20 per cent respectively.’
Classification based on data till 31 March
ICICI Bank is classified in ‘Bucket 1’, in which the second-largest private sector lender will have to maintain an additional 0.20 per cent in Bucket 1 reserves. RBI said this classification is based on data collected from banks till March 31, 2024. The central bank first announced the framework to deal with D-SIBs in 2014. SBI and ICICI Bank were included in this list in 2015 and 2016. In 2017, HDFC Bank was also included in the list along with two other banks. (Language)