RBI Releases 2025 List of Domestic Systemically Important Banks: SBI, HDFC Bank and ICICI Bank

The Reserve Bank of India (RBI) has unveiled its 2025 list of Domestic Systemically Important Banks (D-SIBs), continuing to recognise State Bank of India, HDFC Bank, and ICICI Bank as pivotal to the nation's financial stability.  

These banks are required to maintain additional Common Equity Tier 1 (CET1) capital, reinforcing their resilience against potential systemic risks. 

2025 D-SIBs and Their CET1 Requirements 

In the latest announcement, the RBI has placed State Bank of India in bucket 4, necessitating an additional CET1 requirement of 0.80% of Risk Weighted Assets (RWAs).  

HDFC Bank is positioned in bucket 2 with a 0.40% CET1 requirement, while ICICI Bank is in bucket 1 with a 0.20% requirement. These measures are in addition to the Capital Conservation Buffer. 

The D-SIB framework, initially introduced in 2014 and updated in 2023, mandates the RBI to disclose the banks designated as D-SIBs and assign them to appropriate buckets based on their Systemic Importance Scores (SIS). 

Framework and Historical Context 

The RBI's framework for D-SIBs aims to bolster the stability of the financial system by ensuring that banks with significant systemic importance maintain higher capital buffers.  

This approach is designed to mitigate the risks posed by potential failures of these institutions, which could have far-reaching impacts on the economy. 

State Bank of India and ICICI Bank were first identified as D-SIBs in 2015 and 2016, respectively, with HDFC Bank joining them in 2017. The current list is based on data collected as of March 31, 2025. 

Global Systemically Important Banks (G-SIBs) in India 

For foreign banks operating in India that are classified as Global Systemically Important Banks (G-SIBs), there is an obligation to maintain an additional CET1 capital surcharge. This surcharge is proportionate to their RWAs in India, aligning with the requirements set by their home regulators. 

Read More: Razorpay Secures RBI Cross-Border Payment Licence to Expand Global Transactions! 

Conclusion 

The RBI's 2025 list of D-SIBs reaffirms the importance of State Bank of India, HDFC Bank, and ICICI Bank in maintaining financial stability. By adhering to the additional CET1 requirements, these banks are better equipped to manage systemic risks and contribute to the overall resilience of the banking sector. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.