RBI Retains SBI, HDFC Bank and ICICI Bank as D-SIBs in 2025 List

The Reserve Bank of India (RBI) has retained State Bank of India (SBI), HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) in its latest 2025 list.

• No Change in Bucketing Structure:
  All three banks continue in the same buckets as assigned in the previous year based on their Systemic Importance Scores (SIS).
• Additional CET1 Requirements:
  As per RBI’s circular, the extra Common Equity Tier-1 (CET1) capital requirement (as % of Risk-Weighted Assets) is:
  • SBI: 0.80%
  • HDFC Bank: 0.40%
  • ICICI Bank: 0.20%
    These are over and above the Capital Conservation Buffer (CCB).
• About D-SIB Framework:
  • Introduced in 2015, requiring RBI to annually publish the list of D-SIBs.
  • Banks are placed into different buckets based on their SIS, reflecting their importance to the financial system.
  • Higher bucket → Larger additional capital requirement.
  • Ensures that systemically important banks maintain higher resilience against financial stress.
• Rule for Foreign Banks (G-SIBs):
  If a foreign bank operating in India is designated a Global Systemically Important Bank (G-SIB), it must maintain an additional CET1 capital surcharge in India.
  This surcharge is proportional to:
  (Home regulator’s G-SIB CET1 buffer × India RWAs) / Total global RWAs
• Background of D-SIB Classification in India:
  • SBI and ICICI Bank: First classified as D-SIBs in 2015 and 2016.
  • HDFC Bank: Added in 2017.
  • The 2025 assessment is based on data as of March 31, 2025.

Source: TH