RBI Retains Key Banks as Systemically Important

13 Nov 2024 , 02:02 PM

The Reserve Bank of India (RBI) declared on Wednesday that it has maintained the same classification as the previous year for the 2024 list, designating State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs).

The D-SIB framework, which was created by the RBI in 2014 and revised in December 2023, requires systemically significant banks to fulfil additional CET1 standards according to their designated bucket, which is a reflection of their Systemic Importance Score (SIS).

In addition to the capital conservation buffer, these banks are required to maintain an additional Common Equity Tier 1 (CET1) requirement.

In proportion to their risk-weighted assets in India, foreign banks that are designated as Global Systemically Important Banks (G-SIBs) are additionally required to retain additional CET1.

SBI and ICICI shares were down 0.93% and 0.1%, respectively, at Rs 818.90 and Rs 1,265.65, while HDFC Bank shares were down 0.6%, trading at Rs 1,714.00 apiece on Wednesday as of 1:55 PM.

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