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), reinforcing their critical role in India’s economy.
SBI, being the largest, is placed in Bucket 4, with an additional 0.80% Common Equity Tier 1 (CET1) capital requirement. HDFC Bank falls in Bucket 2 with 0.40%, and ICICI Bank in Bucket 1 with 0.20%. Known as "too big to fail," these banks must hold extra capital to withstand financial risks, with new requirements effective April 1, 2025.