The Reserve Bank of India (RBI) has announced that State Bank of India (SBI), HDFC Bank, and ICICI Bank will continue to be classified as domestic systemically important banks (D-SIBs) as of November 13, 2024. These banks are considered "too-big-to-fail" due to their significant role in the financial system.

What Are D-SIBs?

D-SIBs are banks that are considered so important to the financial system that their failure could lead to serious consequences for the economy. These banks must maintain extra capital to help protect the system in case of financial stress.

Higher Capital Buffer for SBI and HDFC Bank

Starting from April 1, 2025, both SBI and HDFC Bank will face increased capital buffer requirements.

SBI will need to maintain an additional 0.80% of its risk-weighted assets. This is higher than the current 0.60% buffer.

HDFC Bank will see its buffer rise to 0.40%, up from the current 0.20%.

Source: Media Reports