The Reserve Bank of India (RBI) on Tuesday 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 2020 list of D-SIBs.
RBI places D-SIBs in appropriate buckets depending upon their Systemic Importance Scores (SISs). The central bank’s current update on D-SIBs is based on the data collected from banks as on March 31, 2021. Based on the bucket in which a D-SIB is placed, an additional common equity requirement is applied to it.
Under 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. RBI said the additional CET1 requirement is in addition to the capital conservation buffer.