The Reserve Bank of India confirmed on 13 November 2024 that State Bank of India, HDFC Bank, and ICICI Bank would retain their designations as Domestic Systemically Important Banks for the year. The central bank's annual review produced no changes to the roster of designated institutions.
The D-SIB framework, introduced by the Reserve Bank of India in 2014 following guidelines developed by the Financial Stability Board and the Basel Committee on Banking Supervision, requires designated institutions to hold additional Common Equity Tier 1 capital above the standard regulatory minimum. The magnitude of the surcharge varies by bucket, with banks classified at higher levels of systemic importance facing proportionally larger capital requirements designed to ensure their resilience under stress scenarios.
CAPITAL SURCHARGES MAINTAINED FOR SBI AND HDFC BANK
The 2024 list kept the same bucketing structure as 2023, confirming additional CET1 requirements of 0.80% of risk-weighted assets for State Bank of India and 0.40% for HDFC Bank, both applicable from 1 April 2025; until 31 March 2025 the surcharges remain 0.60% and 0.20% respectively. SBI, the country's largest public sector bank, carries the highest D-SIB surcharge among Indian institutions.
HDFC Bank completed its merger with HDFC Limited, then the country's largest housing finance company, in July 2023.
ICICI Bank retained its D-SIB status at its existing bucket, with the applicable capital surcharge unchanged from the prior year.