RBI has reaffirmed SBI, HDFC Bank and ICICI Bank as domestic systemically important banks, requiring them to maintain additional CET1 capital buffers based on their systemic importance scores.
RBI retains SBI, HDFC Bank and ICICI Bank as systemically important banks
The Reserve Bank of India (RBI) on 2 December said it has once again classified State Bank of India, HDFC Bank and ICICI Bank as Domestic Systemically Important Banks (D-SIBs).
These lenders are required to hold higher capital buffers given their scale, interconnectedness and role in the financial system.
The central bank said the additional Common Equity Tier-1 (CET1) capital requirement—applied over and above the Capital Conservation Buffer—stands at 0.10 percent of risk-weighted assets for ICICI Bank, 0.40 percent for HDFC Bank and 0.80 percent for SBI.
RBI introduced the D-SIB framework in 2014, requiring annual disclosure of banks designated as systemically important and assigning them to buckets based on their Systemic Importance Scores. Banks placed in higher buckets face steeper CET1 surcharge requirements.
The framework also extends to foreign banks operating in India that have been identified as Global Systemically Important Banks (G-SIBs) by their home regulators.
Such entities must maintain an additional CET1 buffer in India proportionate to their risk-weighted assets here, in line with the global surcharge applicable to the parent group.
