RBI declared these 3 banks as domestic systemically important banks

The Reserve Bank of India has again included the country’s top three banks, State Bank of India, HDFC Bank and ICICI Bank, in the D-SIB list i.e. domestic systemically important banks. On Wednesday, RBI released the list of D-SIBs. To be included in the list, banks must maintain high Common Equity Tier 1 and capital conservation buffers.

Which bank is kept in which bucket

• As per the list released by RBI, SBI is in Bucket 4. For this, banks are required to maintain additional CET1 of 0.80 percent.
• ICICI Bank has been placed in Bucket 1 in this list. The second largest private sector lender will have to maintain an additional 0.20 per cent in CET1 buffer.
• Similarly, HDFC Bank, the largest private sector lender, is in Bucket 2. Under this, the bank will have to maintain a CET of more than 0.40 percent.

RBI says higher D-SIB surcharge will be applicable for HDFC Bank and SBI from April 1, 2025. D-SIB surcharge on SBI and HDFC Bank will be 0.60 per cent and 0.20 per cent till March 31, 2025.

This classification is data based

The central bank says that this classification has been done on the basis of data collected by banks till March 31, 2024. RBI first announced the outline of the D-SIB list in 2014. After which SBI was tagged in this list in the year 2015.

Similarly, ICICI was included in the D-SIB list in the year 2016. HDFC Bank was added to this list in the year 2017 along with two other banks.