The Reserve Bank of India designated State Bank of India and ICICI Bank last night as systemically important banks.
The announcement follows the central bank’s release of the framework on domestic systemically important banks, or D-SIBs, in July 2014. Under the framework, the RBI is required to disclose the names of D-SIBs annually in August from this year.
As a result of their classification as D-SIBs, the two lenders will also be required to have additional common equity Tier 1.
For SBI, the additional CET1, as a percentage of risk weighted assets, will be 0.6%, whereas, for ICICI, it will be 0.2%, the RBI says.
