RBI Identifies SBI, HDFC Bank, ICICI Bank as Domestic Systemically Important Banks with Additional CET1 Requirement

The Reserve Bank of India (RBI) has identified State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) for 2025. They will have to maintain an additional Common Equity Tier 1 (CET1) requirement of 0.80%, 0.40%, and 0.20% of Risk Weighted Assets (RWAs), respectively. This additional requirement is in addition to the Capital Conservation Buffer. The D-SIB framework requires the RBI to disclose the names of banks designated as D-SIBs starting from 2015 and place them in appropriate buckets based on their Systemic Importance Scores (SIS).