Bhubaneswar: The SBI, ICICI, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2020 list of D-SIBs, stated the Reserve Bank of India (RBI) on Tuesday.
While ICICI Bank and HDFC Bank fall under bucket 1, SBI falls under bucket 3. Under bucket 1, banks require 0.2 per cent of additional common equity Tier 1 capital as a percentage of risk weighted assets (RWAs), and under bucket 3, banks require 0.6 per cent of additional common equity Tier 1 capital as a percentage of RWAs.
The RBI had issued the Framework for dealing with Domestic Systemically Important Banks (D-SIBs) on July 22, 2014. 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).
The RBI had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. Based on data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB, along with SBI and ICICI Bank. The current update is based on the data collected from banks as on March 31, 2021.
