The central bank says that this classification has been done on the basis of data collected by banks till March 31, 2024. For the first time in the year 2014, RBI had announced the outline of the D-SIB list.
The Reserve Bank of India has again included the country’s three top 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 this list, banks need to maintain high common equity tier 1 and capital conservation buffer.
Which bank is placed in which bucket
- According to the list released by RBI, SBI is in bucket 4. For this, banks are required to maintain 0.80 percent additional CET 1.
- ICICI Bank is placed in bucket 1 in this list. The second largest private sector lender will have to maintain an additional 0.20 percent in CET 1 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 that from April 1, 2025, higher D-SIB surcharge will be applicable for HDFC Bank and SBI. The D-SIB surcharge on SBI and HDFC Bank will be 0.60 percent and 0.20 percent 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. For the first time in the year 2014, RBI had announced the outline of the D-SIB list. After which SBI was tagged in this list in the year 2015.
Similarly, ICICI was tagged in the D-SIB list in the year 2016. HDFC Bank was added to this list along with two other banks in the year 2017.
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