RBI releases 2023 list of Domestic Systemically Important Banks

Domestic Systemically Important Banks (D-SIBs) continue to include SBI, HDFC Bank, and ICICI Bank. While ICICI Bank remains in the same bucketing system as last year, SBI and HDFC Bank move to higher buckets-SBI shifts from bucket 3 to bucket 4, and HDFC Bank shifts from bucket 1 to bucket 2.

SBI and HDFC Bank will face increased D-SIB buffer obligations as a result of the bucket increase from April 1, 2025. The capital conservation buffer will be supplemented by an additional Common Equity Tier 1 (CET1) requirement.

On July 22, 2014, the Reserve Bank announced the Framework for Dealing with Domestic Systemically Important Banks (D-SIBs). Beginning in 2015, the D-SIB framework mandates the Reserve Bank to reveal the names of banks classified as D-SIBs and place these banks in relevant buckets based on their Systemic Importance Scores (SISs). A D-SIB must meet additional common equity specifications based on the bucket in which it is placed.

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

In 2015 and 2016, the Reserve Bank designated SBI and ICICI Bank as D-SIBs. According to data collected from banks as of March 31, 2017, HDFC Bank, along with SBI and ICICI Bank, was designated as a D-SIB.

The current version is based on data obtained from banks as of March 31, 2023, and takes into account HDFC Bank’s enhanced systemic importance following the merger of old HDFC Limited into HDFC Bank on July 1, 2023.

The following is a list of D-SIBs: