Mumbai – Dec 2 (LatestNewsX) – The Reserve Bank of India confirmed that State Bank of India (SBI), HDFC Bank and ICICI Bank will remain among the country’s systemically important banks, a status that was first given to SBI and ICICI in 2015 and 2016, and added HDFC in 2017. The latest update is based on data collected from the banks as of 31 March 2025, according to an official RBI notice.
Systemically important banks are deemed too big to fail because of their sheer size, their cross‑border activities, their lack of readily available substitutes, and the intricate network of relationships they maintain with other institutions. If such a bank were to collapse, it could trigger a wide‑ranging disruption across the banking system and the broader economy.
Under the RBI’s D‑SIB framework, banks are placed into different “buckets” according to their Systemic Importance Scores. Each bucket carries a specific additional common‑equity‑tier‑1 (CET1) capital surcharge that must be added on top of the standard Basel III requirements. The RBI’s directive goes further: SBI must hold an extra 0.80 % of its risk‑weighted assets (RWAs) in additional capital, HDFC Bank an extra 0.40 %, and ICICI an extra 0.20 %.
The policy framework was first introduced on 22 July 2014 and last updated on 28 December 2023. It requires the RBI to publish the names of banks designated as D‑SIBs from 2015 onward and to classify them accurately based on their SIS values. When a foreign bank operating in India is also a Global Systemically Important Bank (G‑SIB) elsewhere, it must hold a proportionate CET1 buffer in India: the surcharge ratified by its home regulator, multiplied by its Indian RWAs, divided by the total global RWAs of the group.
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