Money & Banking

‘SBI, ICICI Bank and HDFC Bank will continue to be D-SIBs’

Our Bureau. Mumbai | Updated on January 19, 2021 Published on January 19, 2021

The Reserve Bank of India (RBI), on Tuesday, said that State Bank of India, ICICI Bank, and HDFC Bank will continue to be identified as Domestic Systemically Important Banks (D-SIBs).

The aforementioned banks have been identified as D-SIBs as per the RBI’s D-SIB framework issued on July 22, 2014. The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015.

As part of this framework, these three banks have been prescribed additional Common Equity Tier (CET) 1 requirement as a percentage of their Risk Weighted Assets (RWAs).

The additional CET1 requirement is in addition to the capital conservation buffer.

In the case of SBI, the additional CET 1 requirement has been prescribed at 0.60 per cent of its RWAs.

In the case of ICICI Bank and HDFC Bank, the additional CET 1 requirement has been prescribed at 0.20 per cent of their respective RWAs.

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Published on January 19, 2021
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