SBI, HDFC Bank, ICICI Bank figure in RBI’s 2024 list of Domestic Systemically Important Banks (D-SIBs)

SBI, HDFC Bank, and ICICI Bank named as Domestic Systemically Important Banks with updated requirements by RBI.

State Bank of India, HDFC Bank and ICICI Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs) in the 2024 list of this category.

They have been named under the same bucketing structure as in the 2023 list of D-SIBs.

While the Additional Common Equity Tier 1 requirement as a percentage of Risk Weighted Assets (RWAs) for SBI has been fixed at 0.80%, it is 0.40% for HDFC Bank and 0.20% for ICICI Bank.

The higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 01, 2025.

“Hence, up to March 31, 2025, the D-SIB surcharge applicable to SBI and HDFC Bank will be 0.60% and 0.20% respectively,” RBI said in a circular.

The Reserve Bank had 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 (SISs).