RBI Releases 2023 List Of D-SIBs

The Reserve Bank of India (RBI) has unveiled its updated list of Domestic Systemically Important Banks (D-SIBs) for 2023. 

In line with the 2022 list, the State Bank of India (SBI), HDFC Bank and ICICI Bank are still categorised as Domestic Systemically Important Banks (D-SIBs), according to the central bank.

While ICICI Bank retains its position in the same bucket as the previous year, SBI and HDFC Bank experience notable shifts in their categorisation. SBI, previously in bucket 3, moves up to bucket 4, while HDFC Bank transitions from bucket 1 to bucket 2. This change signifies an increased level of systemic importance and warrants additional regulatory measures.

Effective from 1 April 2025, both SBI and HDFC Bank will be subjected to higher D-SIB buffer requirements due to their movement to higher buckets. The additional Common Equity Tier 1 (CET1) requirement will be imposed alongside the existing capital conservation buffer, reinforcing the regulatory framework to ensure the resilience of these banks in the face of financial stress.

The higher D-SIB surcharge for SBI and HDFC Bank will be applicable from 1 April 1, 2025. Therefore, until 31 March 2025, the banks will operate under the existing regulatory requirements.

This classification and the associated buffer requirements are part of the RBI's ongoing efforts to enhance the stability and resilience of the financial system by identifying and addressing potential risks posed by systemically important banks. The D-SIB framework aims to ensure the soundness of these institutions and mitigate the impact of their failure on the broader economy.