Which are the 'too-big-to-fail' banks of India? Here is a list of probables

The Reserve Bank of India (RBI) yesterday said it will take a closer look at the bigger, systemically important banks in India and regulate them strictly since the failure of these institutions can very well have cascading impacts on the stability of the financial system.

Going by the guidelines, the central bank will choose the systemically important banks in the financial system using the yardsticks of size, inter-connectedness and the complexity of operational structure.

The RBI has indicated that based on 31 March 2013 numbers, about six banks will be classified as systemically important banks.

While the central bank will announce the first list of bigger banks only in August 2015 and every year thereafter, Frisbiz has compiled a list of eight big banks, which could possibly be identified by the RBI as too-big-to-fail-banks.

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The list has been prepared based on the banks’ asset size, subsidiary operations and branch network.

While total asset of a bank indicates the size of the entity, number of subsidiaries and area of operations give a sense on the interconnectedness in the financial system and the complexity of their operations.

Total assets and branches are as on 31 March 2013.