RBI releases 2022 List of Domestic Systemically Important Banks (D-SIBs)

The Reserve Bank of India(RBI) published the list of Domestic Systemically Important Banks (D-SIBs) for 2021. According to the 2020 list of D-SIBs, the RBI continues to classify SBI, ICICI Bank, and HDFC Bank as domestic systemically important banks (D-SIBs).

Under the same bucketing system as the 2021 list of D-SIBs, State Bank of India, ICICI Bank, and HDFC Bank are still classified as Domestic Systemically Important Banks (D-SIBs). After being phased in beginning on April 1, 2016, the additional Common Equity Tier 1 (CET1) requirement for D-SIBs went into effect fully on April 1, 2019. In addition to the capital conservation buffer, there will be an additional CET1 requirement.

The list of D-SIBs is as follows:

Background:

The Framework for Handling Domestic Systemically Important Banks (D-SIBs) was released by the Reserve Bank on July 22, 2014. Starting in 2015, the Reserve Bank is required by the D-SIB framework to disclose the names of banks that have been designated as D-SIBs and classify those banks into the appropriate buckets based on their Systemic Importance Scores (SISs). An additional common equity requirement needs to be applied to a D-SIB depending on the bucket it is placed in.

If a foreign bank with branch presence in India is a Global Systemically Important Bank (G-SIB), it must maintain additional CET1 capital surcharge in India as required of it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs) in India, i.e., additional CET1 buffer prescribed by the home regulator (amount) multiplied by India RWA as per consolidated global Group books divided by total consolidated global Group RWA.

SBI and ICICI Bank were designated as D-SIBs by the Reserve Bank in 2015 and 2016. In accordance with information gathered from banks as of March 31, 2017, SBI, ICICI Bank, and HDFC Bank were all designated as D-SIBs. Based on information gathered from banks as of March 31, 2022, the current update was created.