RBI names SBI, ICICI and HDFC as systemically important banks

Inclusion in the list gives additional comfort to investors that these banks won't be allowed to fail and therefore, borrowing costs of these banks from the markets are cheaper than their peers

Mumbai: The Reserve Bank of India (RBI) on Thursday named State Bank of India (SBI), ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs), which in other words mean banks that are too big to fail.

As per the norms, these banks will have to set aside more capital for their continued operation. RBI comes with the list every year since 2015. Inclusion in D-SIB indicates that failure of any of these banks would have a cascading effect on Indian financial system.

Inclusion in the list gives additional comfort to investors that these banks won’t be allowed to fail and