SBI, HDFC Bank, ICICI Bank remain systemically important banks: RBI The Reserve Bank on Thursday said SBI, HDFC Bank and ICICI Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs) or institutions which are ‘too big to fail’. The D-SIB Framework requires the Reserve Bank of India to disclose the names of banks designated as D-SIBs every year in August, starting from August 2015. The framework also requires that D-SIBs may be placed in four buckets depending upon their Systemic Importance Scores (SISs). SBI shifted from bucket 3 to bucket 4 and HDFC Bank moved from bucket 1 to bucket 2, meaning the lenders will have to meet higher additional Common Equity Tier 1 as a percentage of Risk Weighted Assets (RWAs). The higher D-SIB surcharge for SBI (0.8 per cent) and HDFC Bank (0.4 per cent) will be applicable from April 1, 2025. Hence, up to March 31, 2025, the D-SIB surcharge applicable to SBI and HDFC Bank will be 0.60 per cent and 0.20 per cent, respectively, the RBI said. The additional CET1 requirement will be in addition to the capital conservation buffer. The central bank had announced SBI and ICICI Bank as D-SIBs in 2015 and 2016. Based on data collected from banks as of March 31, 2017, HDFC Bank was also classified as a D-SIB. The current update is based on the data collected from banks as of March 31, 2023, and factoring in the increased systemic importance of HDFC Bank post the merger of erstwhile HDFC Ltd into HDFC Bank on July 1, 2023.
2. Warren Buffett talked about his business partner Charlie Munger in his letter. He said they both think alike but what it takes Warren Buffett a page to explain, Charlie Munger sums up in a sentence. Charlie Munger’s version, moreover, is always more clearly reasoned.
The lesson for investors: “I will add to Charlie’s list a rule of my own: Find a very smart high-grade partner – preferably slightly older than you – and then listen very carefully to what he says,” Warren Buffett said.
3. Warren Buffett emphasised that his long-time business partner Charlie Munger and he are business pickers, not stock pickers. He further said that efficient markets exist only in textbooks.
“We own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business pickers,” Warren Buffett said.