BackRBI releases Domestic Systemically Important Banks (D-SIBs) of 2021: List here
On Monday, the Reserve Bank of India (RBI) issued its list of Domestic Systemically Important Banks (D-SIBs) for 2021.
PremiumOn Monday, the Reserve Bank of India (RBI) issued its list of Domestic Systemically Important Banks (D-SIBs) for 2021. In line with the 2020 list of D-SIBs, SBI, ICICI Bank, and HDFC Bank are still categorized as Domestic Systemically Important Banks (D-SIBs), according to the central bank.
The additional Common Equity Tier 1 (CET1) requirement for DSIBs was phased in from April 1, 2016 and became fully effective from April 1, 2019 and the additional CET1 requirement will be in addition to the capital conservation buffer, said RBI in a statement.
The list of D-SIBs is as follows as per RBI
| Bucket | Banks | Additional Common Equity Tier 1 requirement as a percentage of Risk Weighted Assets (RWAs) |
| 5 | - | 1% |
| 4 | - | 0.80% |
| 3 | State Bank of India | 0.60% |
| 2 | - | 0.40% |
| 1 | ICICI Bank, HDFC Bank | 0.20% |
On July 22, 2014, the Reserve Bank published the Framework for handling Domestic Systemically Important Banks (D-SIBs). Effective in 2015, the D-SIB framework mandates that the Reserve Bank reveal the names of banks that have been designated as D-SIBs and categorize those institutions appropriately based on their Systemic Importance Scores (SISs).
According to RBI, 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 a 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 Risk Weighted Assets (RWAs) in India, i.e., additional CET1 buffer prescribed by the home regulator (amount) multiplied by India RWA as per consolidated global Group books divided by total consolidated global Group RWA.
SBI and ICICI Bank were designated as D-SIBs by the Reserve Bank in 2015 and 2016. In accordance with information gathered from banks as of March 31, 2017, SBI, ICICI Bank, and HDFC Bank were all designated as D-SIBs. The current update is based on the data collected from banks as on March 31, 2021, said RBI today in a press release statement.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
