RBI Retains SBI, HDFC Bank, and ICICI Bank as D-SIBs with Increased Capital Requirements
| Aspect | Details |
|---|---|
| Why in News | RBI retains SBI, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs). |
| Additional Capital Buffers | SBI's CET1 requirement: 0.80% from April 2025 (up from 0.60%). HDFC Bank's CET1: 0.40% (up from 0.20%). |
| Framework Issuance | D-SIB framework issued on July 22, 2014, updated in December 2023. |
| SBI Classification | Classified as D-SIB in 2015. |
| ICICI Bank Classification | Classified as D-SIB in 2016. |
| HDFC Bank Classification | Classified as D-SIB in 2017. |
| SIS (Systemic Importance Score) | Banks categorized based on their Systemic Importance Scores (SISs). |
| Objective of D-SIB Classification | Banks deemed "too big to fail," requiring extra capital buffers to prevent systemic disruption. |
| Capital Conservation Buffer | Additional CET1 buffer is over and above the capital conservation requirement. |