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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). While ICICI Bank maintains its previous categorization, SBI has moved up from bucket 3 to bucket 4, and HDFC Bank has shifted from bucket 1 to bucket 2, according to the RBI’s latest announcement.

Starting from April 1, 2025, SBI and HDFC Bank will be subject to higher D-SIB buffer requirements due to their upgraded bucket placements. This additional Common Equity Tier 1 (CET1) requirement will be implemented alongside the existing capital conservation buffer, reinforcing their financial strength as mandated by the RBI. This move emphasizes the central bank’s commitment to ensuring the resilience and stability of these major banking entities in the Indian financial system.

According to the RBI, the D-SIB framework mandates the disclosure of banks identified as D-SIBs since 2015. These banks are categorized into specific buckets based on their Systemic Importance Scores (SISs), as outlined by the Reserve Bank.

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