RBI said this big thing about SBI, HDFC Bank and ICICI Bank!
The largest public sector bank bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">state bank of india (SBI) and two private sector giants icici bank and hdfc bank have again been selected as important domestic banks (D-SIBs). The banking sector regulator bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india has included sbi, icici bank and hdfc bank in the category of (D-SIBs).
To be included in the list of D-SIBs, banks have to fulfill certain conditions. According to the bucket in which these banks have been classified, it is necessary to maintain higher common equity tier 1 (CET1) along with capital conservation buffer. sbi is included in bucket 4 and the bank will have to keep 0.80 percent additional common equity tier 1 as per the list. hdfc bank is included in bucket 2 and the bank will have to maintain 0.40 percent common equity tier 1. icici bank is included in bucket 1. The bank will have to maintain 0.20 percent CET1 buffer. RBI said that higher D-SIB surcharge for sbi and hdfc bank will be applicable from april 1, 2025.
SIB is called a bank which comes in the category of Too Big to Fail (TBTF). Failure of these banks can have a big impact. Due to TBTF status, the government helps such banks in case of failure. RBI included these three banks in the category of D-SIB in the year 2023. The current update is based on the data collected from banks till march 31, 2024. RBI prepared a framework for D-SIB in the year 2014. And sbi was included in it in the year 2015 and icici bank in the year 2016. In the year 2017, hdfc bank was also included in the list along with these two banks.
To be included in the list of D-SIBs, banks have to fulfill certain conditions. According to the bucket in which these banks have been classified, it is necessary to maintain higher common equity tier 1 (CET1) along with capital conservation buffer. sbi is included in bucket 4 and the bank will have to keep 0.80 percent additional common equity tier 1 as per the list. hdfc bank is included in bucket 2 and the bank will have to maintain 0.40 percent common equity tier 1. icici bank is included in bucket 1. The bank will have to maintain 0.20 percent CET1 buffer. RBI said that higher D-SIB surcharge for sbi and hdfc bank will be applicable from april 1, 2025.
SIB is called a bank which comes in the category of Too Big to Fail (TBTF). Failure of these banks can have a big impact. Due to TBTF status, the government helps such banks in case of failure. RBI included these three banks in the category of D-SIB in the year 2023. The current update is based on the data collected from banks till march 31, 2024. RBI prepared a framework for D-SIB in the year 2014. And sbi was included in it in the year 2015 and icici bank in the year 2016. In the year 2017, hdfc bank was also included in the list along with these two banks.