State Bank Of India

Reserve Bank of India (RBI) has identified State Bank of India (SBI) and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) in 2016 and has retained their bucketing structure as it was last year. The additional Common Equity Tier 1 (CET1) requirement for these banks has already been phased-in from April 1, 2016 and would become fully effective from April 1, 2019. The additional CET1 requirement will be in addition to the capital conservation buffer.

The central bank had issued a Framework for D-SIBs on July 22, 2014. The D-SIB Framework requires the Reserve Bank to disclose the names of banks designated as D-SIBs every year in August starting 2015. The Framework also requires D-SIBs to be placed in four buckets depending upon their Systemic Importance Scores (SISs). Based on the bucket in which a D-SIB is placed, additional common equity requirement has to be applied to it.

Further, as mentioned in the D-SIB Framework, if a foreign bank has branch presence in India is a Global Systemically Important Bank (G-SIB), it has to maintain additional CET1 capital surcharge in India as applicable to it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs) in India.