Wed Nov 13 06:30:14 UTC 2024: ## India’s Top Banks Remain Designated as Systemically Important
**MUMBAI -** The Reserve Bank of India (RBI) has confirmed that State Bank of India (SBI), HDFC Bank, and ICICI Bank continue to be classified as Domestic Systemically Important Banks (D-SIBs) for 2024. This marks the continuation of their designation from the previous year.
The RBI’s updated framework, released on December 28, 2023, categorizes D-SIBs based on their Systemic Importance Scores (SISs), which determine the additional common equity requirement they must hold. For 2025, SBI will face a 0.80% surcharge, HDFC Bank a 0.40% surcharge, and ICICI Bank a 0.20% surcharge, all calculated as a percentage of their Risk Weighted Assets (RWAs).
The RBI has clarified that the higher D-SIB surcharge for SBI and HDFC Bank will only be implemented from April 1, 2025. Until then, the surcharge for SBI will be 0.60%, and 0.20% for HDFC Bank.
The D-SIB framework, originally implemented in 2014, aims to mitigate the risk of systemic failures in the banking sector. The RBI first designated SBI and ICICI Bank as D-SIBs in 2015 and 2016 respectively, while HDFC Bank joined the list in 2017. The current update reflects data gathered from banks as of March 31, 2024.
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