NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / HDFC gets 'too big to fail' status from RBI
    HDFC gets 'too big to fail' status from RBI
    1/4
    Business 2 min read

    HDFC gets 'too big to fail' status from RBI

    By Anish Chakraborty
    Sep 05, 2017
    01:19 pm
    HDFC gets 'too big to fail' status from RBI

    In 2015, the Reserve Bank of India had classified the country's largest lender SBI and private sector major ICICI bank as D-SIB or domestic systemically important bank. Now, it has included HDFC Bank in this list of 'too big to fail' lenders. Therefore, as of now, there are three 'too big to fail' financial entities in the country spearheading its economy. Here's more.

    2/4

    What does it mean?

    SIBs, such as State Bank of India, ICICI Bank and now HDFC, are subjected to intense levels of supervision, as their failure would disrupt the entire banking system. Therefore, these banks have to abide by a more rigorous regulation and capital requirement compared to other ones. On the positive side, these banks are considered to be more secure by investors for parking bulk funds.

    3/4

    What are its effects?

    SIBs are seen as 'too big to fail (TBTF)' institutions. Therefore, they are likely to get government support when they suffer from financial stress. These banks are also given certain key advantages in funding markets to bolster their foundations. However, analysts say that this expectation of government aid leads to reckless risk-taking tendencies and increases chances of distress in future.

    4/4

    Where does it stand?

    According to reports, as of June 30, 2017, HDFC's total balance sheet size stands at Rs. 8,95,653 crore, which is a 33% increase from the Rs. 7,55,631 crore that was noticed on June 30, 2016. The bank's deposits as of June 30, 2017, were Rs. 6,71,376 crore, 17% more from what was seen as of June 30, 2016.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    India
    Reserve Bank Of India (RBI)
    ICICI Bank
    State Bank of India (SBI)
    HDFC Bank

    India

    Modi-Xi meet: India-China reaffirm that 'differences will not become disputes' Narendra Modi
    Following Doklam standoff, Government reviews infrastructure along Sino-Indian border India China Border
    Centre and PwC partner up to promote digital payments Indian Government
    SBI to launch SIA, its own chatbot! ICICI Bank

    Reserve Bank Of India (RBI)

    RBI clueless about how much black money demonetization removed India
    Question bound to haunt BJP: Who took the demonetization decision? India
    Rise of fake currency and how to handle it India
    When will the new Rs. 200 note be available? Mahatma Gandhi

    ICICI Bank

    RBI cuts interest rates, loans to get cheaper Reserve Bank Of India (RBI)
    I-T tribunal indicts Roy, NDTV for money laundering Rs.642 crore India
    ICICI Bank offers select customers instant loans through ATMs Business
    SBI chief's salary is nothing compared to private bank counterparts India

    State Bank of India (SBI)

    No more minimum balance hassles with this SBI account India
    NTPC share-sale is expected to fetch govt Rs. 13,800 crore India
    The Tirupati Temple has just deposited 2,780kg gold with SBI India
    PSB Consolidation: Cabinet gives nod to merge state-owned banks India

    HDFC Bank

    HDFC becomes the first bank in India to launch DigiPOS India
    Scam at Farzi Café: Debit cards cloned, Rs. 6L stolen Delhi
    Banks are increasingly using robots to answer basic consumer queries Robots
    Bihar govt's compensation cheque for Sukma martyr bounces Bihar
    Next News Article

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023