HDFC Bank, ICICI Bank, SBI are domestic systemically important lenders: RBI

Essentially, systemically important banks are the ones perceived as too big to fail. Such a perception creates an expectation of govt support for these banks at times of distress

The Reserve Bank of India (RBI) on Tuesday said State Bank of India (SBI), ICICI Bank, and HDFC Bank continue to be identified as domestic systemically important banks (D-SIBs) or institutions which are too big to fail. While private sector lenders ICICI Bank and HDFC Bank fall under bucket 1, SBI falls under bucket 3.

This current classification of banks as domestic systemically important banks is based on the data collected from banks as on March 31, 2021.

Under bucket 1, banks require 0.2 per cent of additional common equity Tier 1 capital as a percentage of risk weighted assets