The Reserve Bank of India (RBI) continues to categorise State Bank of India (SBI), ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs). These three banks are ‘too big to fail’.

Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it. The additional common equity tier 1 (CET1) requirement for SBI continues to be 0.6% of its risk weighted assets while it is 0.20% each for ICICI and HDFC Bank.

 The additional CET1 requirement, which is in addition to the capital conservation buffer, was phased-in from April 1, 2016 and became fully effective from April 1, 2019.

The RBI had issued the framework for dealing with Domestic Systemically Important Banks on July 22, 2014. It requires the RBI to reveal the names of banks that have been designated as D-SIBs since 2015 and place them in buckets depending on Systemic Importance Scores .

The RBI had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. As on March 31, 2017, HDFC Bank was also designated as a D-SIB.

The current update is based on bank data as on March 31, 2022, the RBI said.