SBI, ICICI and HDFC Bank continue to be systemically important banks

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.