The central bank of India has confirmed that SBI, HDFC Bank and ICICI Bank continue to be classified as Domestic Systemically Important Banks (D-SIBs). These banks are considered vital to the health of the Indian financial system. Because of their size, complexity and wide reach, their failure could destabilize the economy — so they are treated as “too important to fail”.
Under this designation, each bank must hold additional core capital — called Common Equity Tier 1 (CET1) — beyond the standard requirements. From April 2025, the surcharge will be 0.80% for SBI, 0.40% for HDFC Bank and 0.20% for ICICI Bank. This extra buffer is intended to improve each bank’s ability to absorb losses and safeguard depositors and the wider financial system — especially in times of stress.
The D-SIB framework was introduced in 2014, and these three banks have held this status — SBI since 2015, ICICI Bank since 2016, and HDFC Bank since 2017. In a banking environment that faces challenges from economic cycles and global uncertainties, the continued identification of these banks as D-SIBs underlines their critical role and the need for robust regulation.
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#RBI
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#ICICI_Bank
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#CET1
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