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SBI, HDFC Bank and ICICI Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs) under the same bucketing structure as in the 2023 list of D-SIBs. The additional Common Equity Tier 1 (CET1) requirement for these D-SIBs will be in addition to the capital conservation buffer. The list of D-SIBs is as follows: Bucket Banks Additional Common Equity Tier 1 requirement as a percentage of Risk Weighted Assets (RWAs) 5 - 1% 4 State Bank of India* 0.80
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FAQ :
SBI, HDFC Bank, and ICICI Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs) in 2024.
D-SIBs are identified to ensure they maintain adequate capital buffers, which are additional Common Equity Tier 1 (CET1) requirements, to absorb losses and maintain financial stability.
The additional Common Equity Tier 1 (CET1) requirement varies based on the bank's bucket. For instance, SBI is in bucket 4 with a 0.80% requirement, HDFC Bank in bucket 2 with 0.40%, and ICICI Bank in bucket 1 with 0.20%.
The higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 01, 2025. Until March 31, 2025, they will have lower applicable surcharges.
D-SIBs are placed in appropriate buckets based on their Systemic Importance Scores (SISs), as outlined in the Reserve Bank's framework for dealing with D-SIBs.
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