RBI Elevates SBI and HDFC Bank in D-SIB List, ICICI Bank Retains Position

In a recent development, the Reserve Bank of India (RBI) unveiled its updated list of Domestic Systemically Important Banks (D-SIBs) on December 27. Notably, State Bank of India (SBI) and HDFC Bank witnessed upward shifts in their designated buckets, while ICICI Bank maintained its existing position.

The RBI explained, “SBI and HDFC Bank move to higher buckets – SBI shifts from bucket 3 to bucket 4, and HDFC Bank shifts from bucket 1 to bucket 2.”

Effective from April 1, 2025, SBI and HDFC Bank will face increased D-SIB buffer requirements due to their upgraded bucket statuses. The additional Common Equity Tier 1 (CET1) requirement will be applied alongside the capital conservation buffer, as outlined by the central bank.

Until March 31, 2025, the D-SIB surcharge for SBI and HDFC Bank will stand at 0.60% and 0.20%, respectively, in anticipation of the forthcoming adjustments.

The D-SIB framework mandates the disclosure of designated banks and their placement into specific buckets based on Systemic Importance Scores (SISs). Corresponding to their designated buckets, additional common equity requirements are enforced.

Initially identified as D-SIBs in 2015 and 2016, SBI and ICICI Bank’s status remains unchanged. The recent update, based on data as of March 31, 2023, acknowledges HDFC Bank’s heightened systemic importance following the merger with HDFC Limited on July 1, 2023. This alteration prompted the shift in HDFC Bank’s D-SIB categorization.