SBI, HDFC Bank and ICICI Bank are India's 3 best banks, says RBI

State Bank of India, HDFC Bank, and ICICI Bank were once more designated as Domestic Systemically Important Banks (D-SIBs) in 2024.

Published on: Nov 15, 2024, 15:28:53 IST

By HT News Desk

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The Reserve Bank of India (RBI) has designated State Bank of India (SBI), HDFC Bank and ICICI Bank as Domestic systemically important banks (D-SIBs), PTI reported.

The central bank unveiled the list on Wednesday. To find a place in the list, the lender should maintain a higher common equity tier 1 (CET1) in addition to capital conservation buffer as per the bucket under which it has been classified.

Signage at the Reserve Bank of India (RBI) headquarters building in Mumbai, India, on Wednesday, Oct. 9, 2024. Photographer: Dhiraj Singh/Bloomberg (Bloomberg) (HT_PRINT)

The SBI continues to be remain in the top 4, which requires the country's largest lender to keep an additional CET1 of 0.80 per cent, as per the list.

The Reserve Bank of India had issued a framework for dealing with D-SIBs in July 2014, under which it named the designated banks and placed them in appropriate "buckets" depending on their systemic importance.

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HDFC Bank, the largest private sector lender, continues to be bracketed in bucket 2, under which it will have to maintain a higher CET1 by 0.40 per cent, the PTI report added.

According to the RBI, the higher D-SIB surcharge for SBI and HDFC Bank will apply from April 1, 2025.

"Hence, up to March 31, 2025, the D-SIB surcharge applicable to SBI and HDFC Bank will be 0.60 per cent and 0.20 per cent, respectively," the apex bank added.

According to the report, ICICI Bank is classified in bucket 1, wherein the second largest private sector lender will have to maintain an additional 0.20 per cent in the CET1 buffers.

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The RBI said the classifications are based on data collected from banks as of March 31, 2024, the PTI report added.

The RBI had first announced the framework dealing with D-SIBs in 2014 and tagged SBI and ICICI Bank in the list in 2015 and 2016. In 2017, it added HDFC Bank and the other two banks to the list.

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HT News Desk
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