New Delhi: The State Bank of India, ICICI Bank and HDFC Bank continue to be identified as “domestic systemically important banks (D-SIBs)”, according to the Reserve Bank of India (RBI). SIBs are those financial institutions which are too big to fail.
“SBI, ICICI Bank and HDFC Bank continue to be identified as domestic systemically important banks (D-SIBs), under the same bucketing structure as in the 2021 list of D-SIBs,” an RBI circular issued on Monday said.
RBI had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. On the basis of data collected from banks as on March 31, 2017, HDFC Bank was also classified as a D-SIB. The current update is based on data collected from banks as on March 31, 2022.
The framework for dealing with D-SIBs was issued in July 2014. It mandates RBI to disclose the names of banks designated as D-SIBs starting from 2015 and place these lenders in appropriate buckets depending upon their Systemic Importance Scores (SISs).
The central bank said in the circular that private lenders like ICICI Bank and HDFC Bank as well as state-owned SBI continue to be D-SIBs.