RBI: SBI, ICICI continue to be systemically important banks

In the case of SBI, the additional common equity works out to be 0.6% of risk weighted assets

The Reserve Bank of India (RBI) on Thursday retained the classification of State Bank of India and ICICI Bank Ltd as Domestic Systemically Important Banks (D-SIBs) in 2016 and maintained their bucketing structure as it was last year. 

As per RBI’s framework for D-SIBs, issued in July, 2014, D-SIBs have to be placed in four buckets depending upon their systemic importance score, and based on the bucket in which a D-SIB is placed, additional common equity requirement has to be applied to it. The central bank releases the name of D-SIBs every August. 

In case of SBI, the additional common equity works out to be 0.6% of risk weighted assets and for ICICI, the equity is 0.2%, which the banks have already provided for, RBI said in a notification on its website.  

SBI and ICICI were the only two banks that qualified to be called D-SIBs in both the years based on the financials and data collected from these lenders. 

In compiling the list, the RBI considers factors including size, complexity, interconnectedness, international links among others.