The Reserve Bank of India said that State Bank of India, ICICI Bank and HDFC Bank continue to be domestic systemically important banks (D-SIBs) which are ‘too big to fail’.
RBI said state-owned SBI along with private sector lenders ICICI Bank and HDFC Bank have been placed under the same bucketing structure as in the 2021 list of D-SIBs.
Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it.
Accordingly, the additional common equity tier 1 (CET1) requirement for SBI continues to be 0.6% of its risk weighted assets while that of ICICI and HDFC Bank continue to be 0.2%.
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 current update is based on data collected from banks as on March 31, 2022.