Domestic Systemically Important Banks (D-SIBs)

RBI 2025 D-SIB List: SBI (0.80%), HDFC Bank (0.40%), ICICI Bank (0.20%) retained as Domestic Systemically Important Banks. Full buckets, capital rules & why these 3 are India’s “too big to fail”.

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Every December, one RBI announcement quietly decides how much extra capital India’s biggest banks must hold. Welcome to the Domestic Systemically Important Banks (D-SIB) list — India’s official “too big to fail” tag.

On December 2, 2025, RBI released the 2025 D-SIB list. No surprises — the same three giants continue to rule.

Official 2025 D-SIB List (Updated December 2025)

Rank	Bank	Bucket	Additional CET1 Surcharge	Total CET1 Requirement (incl. 5.5% base + 2.5% CCB)
1	State Bank of India (SBI)	Bucket 4	0.80%	11.30%
2	HDFC Bank	Bucket 2	0.40%	10.90%
3	ICICI Bank	Bucket 1	0.20%	10.70%

Buckets 3 and 5 remain empty — no bank has crossed the danger zone yet.

What Are Domestic Systemically Important Banks (D-SIBs)?

D-SIBs are banks whose failure can trigger a nationwide (or global) financial crisis. RBI identifies them every year using four parameters:

Size (assets >2% of GDP)
Interconnectedness (links with other banks & NBFCs)
Substitutability (no one else can quickly replace their services)
Complexity (derivatives, overseas operations, payment systems)

If a bank scores high on these, it gets the D-SIB tag and is forced to maintain extra high-quality capital so taxpayers never have to bail them out again (remember Yes Bank 2020?).

D-SIB Framework Timeline

2014 → RBI introduces D-SIB rules (inspired by Basel)
2015 → SBI becomes India’s first D-SIB
2016 → ICICI Bank added
2017 → HDFC Bank joins the club
2023 → Post HDFC-HDFC Bank merger, buckets revised
2025 → No change — same three banks, same buckets

How RBI Decides the Buckets

RBI calculates a Systemic Importance Score (SIS) using March 31 data every year.

Bucket	Additional CET1	When it triggers
1	0.20%	Lowest systemic risk
2	0.40%	Moderate risk
3	0.60%	High risk
4	0.80%	Very high (SBI lives here)
5	1.00%	Extreme risk (empty since inception)

The higher the bucket → the more capital the bank must lock up → lower profitability but higher safety.

Real Impact of D-SIB Status

For the Bank	For Investors & Economy
Lower ROE (return on equity) because of extra capital	Stronger financial system
Higher funding cost advantage (markets trust them more)	Reduced chance of bailouts with public money
Stricter RBI monitoring	Implicit “government backing” perception
Limited aggressive lending	Confidence during crises (2020 COVID, 2023 SVB scare)

Why Only Three Banks in 2025?

Despite mergers and rapid growth of private banks (Axis, Kotak, IndusInd), the top-3 still dominate:

Metric (as of Sep 2025)	SBI	HDFC Bank	ICICI Bank	Rest of Industry
Total Assets	₹70+ lakh cr	₹40+ lakh cr	₹24+ lakh cr	Spread across 100+ banks
Deposit Market Share	~23%	~16%	~8%	Remaining 53%
Branch + Digital Reach	Unmatched	Highest among private	Strong urban	Fragmented

No other bank comes even close to threatening their systemic importance.

Future Watch: Who Could Join Next?

Analysts are watching:

Axis Bank + Citi India integration (2026–27)
IDFC First Bank (if aggressive growth continues)
Potential PSB mega-merger (e.g., PNB + BoB + Canara)

But for now, the throne belongs firmly to the big three.

Key Takeaways – D-SIBs 2025

Same three banks since 2018 → reflects extreme concentration in Indian banking
SBI in Bucket 4 means RBI sees it as the most systemically critical
Extra capital surcharge applicable from April 1, 2026
Investors love D-SIB stocks during uncertainty — they are the “safest” banking bets
For UPSC/RBI Grade B/SEBI aspirants: D-SIB framework is a guaranteed exam question every year!