HDFC, ICICI, SBI remain systemically imp banks: RBI

HDFC, ICICI, SBI remain systemically imp banks: RBI

HDFC Bank, ICICI Bank and the State Bank of India (SBI) continue to be the bellwethers of the country’s banking system, with Mint Road Tuesday reiterating that all three lenders remain in the category designated as Domestic Systemically Important Banks.

The additional Common Equity Tier 1 (CET1), a crucial requirement for these lenders, has already been phased-in from April 1, 2016 and became fully effective from April 1, 2019, according to the Reserve Bank of India.

“The additional CET1 requirement will be in addition to the capital conservation buffer,” the central bank said late Tuesday.

While the gauge is 0.60 percent of risk weighted assets for the State Bank of India, it is pegged at 0.20 percent for the two large private lenders.

“SBI, ICICI Bank, and HDFC Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as last year,” RBI said.

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