Mumbai Sep 4 (IANS) The Reserve Bank of India (RBI) on Monday announced it has added private lender HDFC Bank to its list of "domestic systemically important banks" (D-SIBs) considered too big to fail.
"In addition to the SBI (State Bank of India) and ICICI Bank which continue to be identified as Domestic Systemically Important Banks (D-SIBs) the Reserve Bank of India has also identified HDFC Bank as a D-SIB under the same bucketing structure as last year " an RBI release said here.
The D-SIB categorisation imposes additional capital requirements on the banks classified as such.
"The additional Common Equity Tier 1 (CET1) requirement for D-SIBs will become fully effective from April 1 2019. The additional CET1 or core capital requirement will be in addition to the capital conservation buffer " the statement said.
"D-SIB surcharge for HDFC Bank will be applicable from April 1 2018 " it added.
The RBI had issued the framework for dealing with D-SIBs in July 2014.
With HDFC Bank s inclusion there are now three banks that are described as too big to fail including state-run State Bank of India and private lender ICICI Bank.
--IANS
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