According to the RBI, SBI, ICICI Bank, and HDFC Bank have retained their D-SIB status. Simply put, the collapse of these banks on the D-SIB list would devastate the country’s economy, and even the government cannot afford their collapse.
New Delhi. The Reserve Bank of India (RBI) announced on Tuesday (December 2, 2025) that State Bank of India (SBI), HDFC Bank (HDFC Bank), and ICICI Bank (ICICI Bank) have retained their status as Domestic Systemically Important Banks (D-SIBs). These banks have a significant impact on the country’s economy. If these banks ever face difficulties, the entire banking system could be adversely affected. Therefore, the government and RBI hold these banks under stricter regulations.
Banks on the D-SIB list are required to maintain additional capital (CET1 Capital) to ensure they remain strong during a crisis. According to the RBI, ICICI Bank must maintain 0.10%, HDFC Bank 0.40%, and SBI 0.80% of their capital relative to their risk-weighted assets.
The D-SIB list includes India’s three safest banks.
SBI, HDFC Bank, and ICICI Bank are so important to the country’s economy that they are called “too big to fail.” The collapse of these D-SIB banks would devastate the country’s economy, and even the government cannot afford their collapse. Therefore, the government and RBI take every possible step to ensure their stability. Banks included in the D-SIB list are required to maintain a higher Common Equity Tier 1 capital than their respective buckets. This capital allows for risk management. Banks included in the D-SIB list are required to maintain a higher level of Common Equity Tier 1.
The concept of D-SIBs was first introduced in 2014.
The Reserve Bank of India released the D-SIB framework on July 22, 2014, and since 2015, has annually announced which banks are included in it. Under this framework, banks with greater systemic impact are required to maintain higher capital to ensure stability during times of crisis. If a foreign bank operating in India is listed as a Global Systemically Important Bank (G-SIB), it is also required to maintain additional capital in India.
