SBI, ICICI Bank, HDFC Bank systemically important banks: RBI

The Reserve Bank of India (RBI) on Tuesday released the list of Domestic Systemically Important Banks (D-SIBs) for 2021. State Bank of India (SBI), ICICI Bank and HDFC Bank continue to be identified as D-SIBs.
 
"The additional Common Equity Tier 1 (CET1) requirement for D-SIBs was phased-in from April 1, 2016 and became fully effective from April 1, 2019. The additional CET1 requirement will be in addition to the capital conservation buffer," RBI said.
 
The addition CET1 requirement as a percentage of Risk Weighted Assets (RWAs) for SBI is 0.60 per cent, while it is 0.20 per cent for HDFC Bank and ICICI Bank.
 
The RBI's D-SIB framework requires it to disclose the names of banks designated as D-SIBs starting from 2015 and place these banks in appropriate buckets depending upon their Systemic Importance Scores (SISs).
 
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Based on the bucket in which a D-SIB is placed, an additional common equity requirement has to be applied to it. In case a foreign bank having branch presence in India is a Global Systemically Important Bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its RWAs in India.
 
SBI and ICICI Bank were recognised as D-SIBs in 2015 and 2016, respectively. Based on data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB, along with SBI and ICICI Bank. The latest update is based on the data collected from banks as on March 31, 2021.
 
In a separate release, the central bank said that Airtel Payments Bank Ltd has been included in the second schedule of the RBI Act.
 
"We advise that "Airtel Payments Bank Limited" has been included in the second schedule to the Reserve Bank of India Act, 1934 vide notification...dated December 02, 2021 and published in the Gazette of India (Part III - Section 4) dated January 01- January 07, 2022," it said.

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