The Reserve Bank of India (RBI), the country’s central bank, declared on Wednesday that ICICI Bank, HDFC Bank, and State Bank of India (SBI) continue to be classified as domestic systemically significant banks (D-SIBs). According to a Reuters story, these banks—also referred to as “too-big-to-fail” institutions—are subject to particular capital rules designed to protect the financial system.
The RBI has announced that starting April 1, 2025, SBI and HDFC Bank will be required to meet higher capital buffer requirements, increasing their current buffer to 0.80% of risk-weighted assets and double their buffer from 0.20% to 0.40%, as part of their 2014 framework.
HDFC and SBI have been recognized as D-SIBs by the RBI, ensuring robust financial safeguards to prevent economic instability and disruption in the financial sector, following their merger with HDFC last year.
