Shares of State Bank of India and ICICI Bank lost by 0.97% to 2.23% at 11:35 IST on BSE after the Reserve Bank of India named these two banks as domestic systemically important banks.
State Bank of India (down 2.23% at Rs 241.60) and ICICI Bank (down 0.97% at Rs 275.40) edged lower.
Meanwhile, the S&P BSE Sensex was down 264.10 points or 1% at 26,018.99.
Based on the bucket in which a domestic systemically important bank (D-SIB) is placed, an additional common equity requirement has to be applied to it, as mentioned in the D-SIB Framework issued by the Reserve Bank of India (RBI) on 22 July 2014. Under this framework, the additional Common Equity Tier 1 (CET1) requirements as a percentage of Risk Weighted Assets (RWAs) applicable to ICICI Bank is 0.2% while for State Bank of India (SBI) it is 0.6%. The additional Common Equity Tier 1 (CET1) requirements applicable to D-SIBs will be applicable from 1 April 2016 in a phased manner and would become fully effective from 1 April 2019. The additional CET1 requirement will be in addition to the capital conservation buffer.
SBI is India's biggest commercial bank in terms of branch network. ICICI Bank is one of the leading private sector banks in India.
ICICI Bank's net profit rose 12.1% to Rs 2976.16 crore on 8.1% growth in total income to Rs 15802.45 crore in Q1 June 2015 over Q1 June 2014.
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SBI's net profit rose 10.3% to Rs 3692.43 crore on 9.8% growth in total income to Rs 44730.87 crore in Q1 June 2015 over Q1 June 2014.
Government of India holds 59.15% stake in State Bank of India (as per the shareholding pattern as on 30 June 2015).
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