NEWS
SBI, HDFC, ICICI retain ‘systemically important banks’ tag
RBI says SBI will have to hold an additional common equity tier 1 capital ratio of 0.80%, HDFC Bank 0.40% and ICICI Bank 0.20%.
RBI says SBI will have to hold an additional common equity tier 1 capital ratio of 0.80%, HDFC Bank 0.40% and ICICI Bank 0.20%.
The Reserve Bank of India (RBI) has said that State Bank of India, HDFC Bank and ICICI Bank remain as domestic systemically important banks.
The tag means that they will have to maintain additional capital buffers as a percentage of the risk-weighted assets over and above the capital conservation buffer
SBI will have to hold an additional common equity tier 1 (CET1) capital ratio of 0.80%, HDFC Bank 0.40% and ICICI Bank 0.20%.
The current update is based on the data collected from banks as on 31 March 2025, the RBI said.
The central bank names systemically important banks every year since 2015 and places them in appropriate buckets depending upon their systemic importance scores.
The 'Framework for dealing with Domestic Systemically Important Banks' was first issued by the RBI on 22 July 2014, which was subsequently updated on 28 December 2023.
SBI and ICICI Bank were classified as domestic systemically important banks in 2015 and 2016. HDFC Bank joined the category in 2017.
