SBI, HDFC Bank, ICICI remain systemically important: RBI

The Reserve Bank of India said that State Bank of India, HDFC Bank and ICICI Bank will remain as Domestic Systemically Important Banks (D-SIBs) and therefore will have to maintain additional common equity tier 1 (CET1) capital ratios in the same manner prescribed in 2020.

For SBI, the additional CET1 requirement is maintained at 0.6% of the bank's risk weighted assets, while for HDFC Bank and ICICI Bank, the requirement is kept at 0.2%.

The additional CET1 requirement is in addition to the capital conservation buffer and was prescribed to strengthen these bank's capital. The capital conservation buffer, at 2.5% of a bank's total exposures, is in addition to the 4.5% minimum requirement for Common Equity Tier 1 capital.

The additional CET1 requirement for D-SIBs became fully effective from April 1, 2019.

SBI and ICICI Bank were first named as D-SIBs in 2015 and 2016 respectively. HDFC Bank was also classified as a D-SIB, along with the two others, based on the data on March 31, 2017.