Summary of this article
RBI keeps banks as Domestic Systemically Important Banks.
These lenders must hold higher capital buffers.
Updated framework guides systemic importance and disclosures.
The Reserve Bank of India (RBI) on Tuesday said that State Bank of India (SBI), HDFC Bank and ICICI Bank continue to be in the 'domestic systemically important banks' category.
The three lenders will be required to hold additional capital buffers as a percentage of the risk-weighted assets over and above the Capital Conservation Buffer, the RBI said.
SBI has an additional Common Equity Tier 1 (CET1) requirement of 0.80 per cent of RWAs, while the same for HDFC Bank is 0.40 per cent and 0.20 per cent for ICICI Bank.
RBI had first issued the 'Framework for dealing with Domestic Systemically Important Banks (D-SIBs)' on July 22, 2014, which was subsequently updated on December 28, 2023.
The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their Systemic Importance Scores (SIS).
SBI and ICICI Bank were classified as D-SIBs in 2015 and 2016, while HDFC Bank was classified as D-SIB in 2017 along with State Bank of India and ICICI Bank, as per an official statement.
