RBI Retains SBI, ICICI Bank, HDFC Bank as Domestic Systemically Important Banks (D-SIBs)
- Reserve Bank of India has retained State Bank of India, ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs). These three banks have continued to be on the D-SIBs list published by RBI, since Sep 04, 2017.
- Domestic Systemically Important Banks are those banks which if fail would have a significant impact on the economy. The D-SIBs banks are classified into 5 buckets. Bucket 1, Bucket 2, Bucket 3, Bucket 4 and Bucket 5. With Bucket 5 being the most important followed by rest in decreasing order.
- State Bank of India is in Bucket 3, while ICICI Bank and HDFC Bank are in Bucket 1. The updated list is based on the data collected from banks as on March 31, 2021.
The list of D-SIBs is as follows:
| Bucket | Banks | Additional Common Equity Tier 1 requirement as a percentage of Risk Weighted Assets (RWAs) |
| 5 | – | 1% |
| 4 | – | 0.80% |
| 3 | State Bank of India | 0.60% |
| 2 | – | 0.40% |
| 1 | ICICI Bank, HDFC Bank | 0.20% |
Points to remember:
- Full form of D-SIBs?
- How many banks are under the category D-SIBs?
- How many buckets in D-SIBs?
- Which bank in which bucket?
Source: RBI