The Reserve Bank of India said that State Bank of India, ICICI Bank, and HDFC Bank will continue to be identified as Domestic Systemically Important Banks (D-SIBs).
The aforementioned banks have been identified as D-SIBs as per the RBI’s D-SIB framework issued on July 22, 2014. The D-SIB framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs starting from 2015.
As part of this framework, these three banks have been prescribed additional Common Equity Tier (CET) 1 requirement as a percentage of their Risk Weighted Assets (RWAs).
The additional CET1 requirement is in addition to the capital conservation buffer. In the case of SBI, the additional CET 1 requirement has been prescribed at 0.60 per cent of its RWAs.
In the case of ICICI Bank and HDFC Bank, the additional CET 1 requirement has been prescribed at 0.20 per cent of their respective RWAs.