The Reserve Bank of India (RBI), on Monday, said State Bank of India (SBI), ICICI Bank and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2021 list of D-SIBs.
The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs and place these banks in appropriate buckets depending upon their Systemic Importance Scores (SISs).
Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it.
Under the RBI’s ‘Framework for dealing with D-SIBs’, SBI is placed in the third bucket, whereby it is required to maintain Additional Common Equity Tier 1 (CET1) at 0.60 per cent of its Risk Weighted Assets (RWAs).
ICICI Bank and HDFC Bank are placed in the first bucket, whereby they are required to maintain Additional CET1 at 0.20 per cent of their RWAs. The RBI said the additional CET1 requirement is in addition to the capital conservation buffer