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The Reserve Bank of India (RBI) has said that SBI, HDFC Bank and ICICI Bank are important banks in the financial system at the domestic level. At the scale of the country’s financial system, these banks are too big to ‘sink’. The Reserve Bank is required to provide information about the names of banks important to the financial system in a single month every year since August 2015. According to the rules, such institutions can be placed into four categories based on their importance at the system (SIS) level.
What did RBI say?
The central bank said in a statement that while ICICI Bank has the same category-based structure as last year, SB I And HDFC Bank has moved into the higher category. SBI category (bucket) moved from category three to category four and HDFC Bank from category one to category two. This means that banks will have to meet additional common equity share capital (Tier 1) as a percentage of risk weighted assets (RWA).
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About Domestic Systemically Important Banks (D-SIBs) from April 1, 2025 SB I The surcharge will be 0.8 percent. While for HDFC Bank it will be 0.4 percent. Therefore, till March 31, 2025, the D-SIB surcharge for SBI and HDFC Bank will be 0.6 per cent and 0.20 per cent respectively, RBI said.