The Reserve Bank of India (RBI) on Tuesday said state-owned SBI, along with private sector lenders ICICI Bank and HDFC Bank continue to be domestic systemically important banks (D-SIBs) or institutions which are ‘too big to fail’. These three banks have continued to be on the D-SIBs list published by RBI, since Sep 04, 2017.
Domestic Systemically Important Banks are those banks which if fail would have a significant impact on the economy. The D-SIBs banks are classified into 5 buckets. Bucket 1, Bucket 2, Bucket 3, Bucket 4 and Bucket 5. With Bucket 5 being the most important followed by rest in decreasing order. State Bank of India is in Bucket 3, while ICICI Bank and HDFC Bank are in Bucket 1. The updated list is based on the data collected from banks as on March 31, 2021.