RBI increases capital buffer for systemically important SBI and HDFC Bank

Mumbai: State Bank of India and HDFC Bank, the country's two largest lenders, will have to set aside more capital as they have been moved to higher buckets within the Reserve Bank of India's classification of Domestic Systemically Important Banks (D-SIBs).

"SBI shifts from bucket 3 to bucket 4 and HDFC Bank shifts from bucket 1 to bucket 2. For SBI and HDFC Bank, the higher D-SIB buffer requirements on account of the bucket increase will be effective from April 1, 2025," the RBI said on Thursday.

The additional Common Equity Tier-1 (CET-1) requirements will be in addition to the capital conservation buffers that the two banks must maintain.


Given that the higher D-SIB surcharge for the two banks is applicable from April 1, 2025, the surcharge applicable up to March 31, 2025 will be 0.60% for SBI and 0.20% for HDFC Bank, respectively. For banks in the bucket 4 category, such as SBI, the additional CET-1 requirement as a percentage of risk weighted assets is 0.80%. For banks that are in bucket 2, such as HDFC Bank, the requirement is 0.40%.