The Reserve Bank of India (RBI) has published its 2025 list of Domestic Systemically Important Banks (D-SIBs)—institutions whose failure could significantly disrupt the wider financial system and economy. Consistent with the 2024 list, State Bank of India (SBI), HDFC Bank, and ICICI Bank remain classified as D-SIBs. Their categorization reflects their size, interconnectedness, complexity, and importance to India’s banking landscape.
This annual identification is a key part of RBI’s macroprudential regulatory toolkit, aimed at ensuring resilience in the banking sector and safeguarding financial stability.
Who Made the 2025 D-SIB List?
The RBI places D-SIBs into buckets based on their Systemic Importance Scores (SIS). Each bucket carries additional capital requirements in the form of a Common Equity Tier 1 (CET1) buffer, which is applied over and above the Capital Conservation Buffer (CCB).
Here is the 2025 classification:
| Bucket | Bank(s) | Additional CET1 Requirement (as % of RWAs) |
|---|---|---|
| 5 | – | 1.0% |
| 4 | State Bank of India | 0.80% |
| 3 | – | 0.60% |
| 2 | HDFC Bank | 0.40% |
| 1 | ICICI Bank | 0.20% |
Notably, SBI remains the only bank in Bucket 4, reaffirming its position as India’s most systemically significant financial institution.
Why D-SIB Identification Matters
Banks identified as D-SIBs face enhanced regulatory oversight and higher capital requirements. This ensures they maintain stronger buffers to absorb shocks, thereby reducing the probability of failure.
For the broader economy, this results in:
- Improved financial stability
- Lower contagion risks during crises
- Higher depositor confidence
For the banks themselves, D-SIB status reinforces their reputation as trusted institutions capable of withstanding systemic stress.
Understanding the D-SIB Framework
The RBI introduced the D-SIB framework in 2014, drawing inspiration from global standards set by the Financial Stability Board (FSB). The framework was updated in 2023, and since 2015, RBI has annually disclosed the names of India’s D-SIBs.
Under this framework:
- Banks are assessed using indicators such as size, interconnectedness, substitutability, and complexity.
- Their systemic importance determines their placement in one of five buckets.
- A higher bucket means higher additional CET1 requirements, encouraging banks to adopt prudent risk-management practices.
For foreign banks with Indian branches that are classified as Global Systemically Important Banks (G-SIBs), India requires an additional CET1 surcharge proportionate to their domestic Risk Weighted Assets (RWAs).
A Brief History of India’s D-SIBs
- 2015 & 2016: SBI and ICICI Bank became India’s first D-SIBs.
- 2017: HDFC Bank joined the list.
- 2025 List: Based on financial data as of March 31, 2025, the trio remains unchanged.
Their continued inclusion reflects not only their dominance in the sector but also the critical role they play in India’s financial infrastructure.
Conclusion
RBI’s latest designation reinforces the central role of SBI, HDFC Bank, and ICICI Bank in India’s banking ecosystem. As these institutions continue to grow in scale and influence, the enhanced regulatory framework ensures that they remain resilient, well-capitalized, and capable of supporting India’s dynamic and expanding economy.