RBI releases 2024 list of Domestic Systemically Important Banks

The Reserve Bank of India (RBI) has released its 2024 list of Domestic Systemically Important Banks (D-SIBs), continuing to identify State Bank of India (SBI), HDFC Bank, and ICICI Bank under the same bucketing structure as in 2023. These banks are required to maintain additional Common Equity Tier 1 (CET1) capital, which is in addition to the capital conservation buffer. The higher D-SIB surcharge for SBI and HDFC Bank will be applicable from April 1, 2025. The D-SIB framework, initially issued in 2014 and updated in 2023, mandates the RBI to disclose the names of D-SIBs and place them in appropriate buckets based on their Systemic Importance Scores (SISs). This framework ensures that banks with significant systemic importance maintain higher capital buffers to mitigate risks. The current update is based on data collected from banks as of March 31, 2024, and aims to enhance the stability and resilience of the Indian banking system.