SBI, HDFC Bank, ICICI Bank remain systemically important banks, says RBI
This story was originally published at 13:57 IST on 13 November 2024
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--RBI releases 2024 list of domestic systemically important banks
--RBI: SBI, HDFC Bank, ICICI Bank remain domestic systemically important bks
MUMBAI – State Bank of India, HDFC Bank, and ICICI Bank continue to be domestic systemically important banks, the Reserve Bank of India said on Wednesday. The classification indicates that the collapse of these banks might affect the wider financial markets. The RBI had introduced the classification in 2014.
ICICI Bank and HDFC Bank occupied the first and second buckets, respectively, while SBI fell in the fourth bucket. The current update is based on data as of Mar. 31.
The three banks are required to keep additional common equity tier-I as a percentage of the risk-weighted assets, over and above the 5.5% level prescribed for banks in general. The additional capital requirement for ICICI Bank remains 0.20% of risk weighted assets, while it is 0.40% for HDFC Bank and 0.80% for SBI.
SBI was moved to the fourth bucket from the third last year, while HDFC Bank has been moved to the second bucket from the first. As a result, increased surcharge for SBI and HDFC Bank will be applicable from Apr. 1. Until then, SBI will continue with a surcharge of 0.60%, and HDFC Bank with 0.20%.
The first list of domestic systemically important banks was released in 2015, with SBI and ICICI Bank. HDFC Bank was classified as a domestic systemically important bank in 2017.
At 1230 IST, shares of HDFC Bank were down 0.7% at INR 1,706.45 on the National Stock Exchange, while those of SBI were down 1.3% at INR 816.25. Shares of ICICI Bank were down 0.4% at INR 1,265.95. End
Reported by Vidhushi RajPurohit
Edited by Vandana Hingorani
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