Nowadays, reports of banks drowning in the banking sector are heard again and again. This situation is not only a matter of concern for customers, but also affects the economy of the entire country. Recently, the news of another bank drowning has alerted people. In such a situation, the question arises as to which banks are the safest and in which banks it will be right to deposit money.
Realizing this problem, the Reserve Bank of India (RBI) has released a list of “domestic systematically important bank” (D-Sibs) every year. This list is from banks that are considered extremely important for the country’s economy. Let us know which banks are the safest and which name is included in this list.
What are the safest banks?
The names of three major banks have been included in the list of D-Sibs released by RBI. These banks are so strong that they are placed in the category of “too big to fail”. This means that the risk of drowning of these banks is almost negligible.
Bank included in D-Sibs list
- State Bank of India – SBI
It is India’s largest government -owned bank and is considered the safest bank in the country. - HDFC Bank (HDFC Bank)
This private sector bank is known for its strong balance sheet and low NPA (Non-Performing Assets). - ICICI Bank
It is also a large and safe bank in a private sector, which RBI has placed in the category of D-Sibs.
What is D-Sibs?
D-Sibs means Domestic systemally important bank It happens. These are banks that are very important for the country’s economy. If any of these banks sinks, it can affect the entire economy. Therefore, the government and RBI provide special protection to these banks.
Features of d-sibs
- These banks need to maintain additional capital.
- The government and RBI keep a close watch on their financial performance.
- They are considered to be “too big to fail”, that is, on their failure, the government makes every effort to save them.
Overview of safest banks
| Bank name | major features |
| State Bank of India (SBI) | India’s largest government owned bank |
| HDFC Bank (HDFC) | The strongest balance sheet in private sector |
| ICICI Bank (icici) | Low NPA and high customer satisfaction in private sector |
Why is there a banking crisis?
There can be many reasons behind the drowning of banks, such as:
- High NPA: When a bank fails to get back its given loan, it is called Non-Performing Asset (NPA).
- Management failure: poor management is also a major reason for banks sinking.
- Scam: Many times, banks also suffer heavy losses due to scams.
- Low capital: If a bank does not have enough capital, it can come in crisis.
How to recognize which bank is safe?
To check the safety of any bank, attention should be paid to the following points:
- See the bank’s balance sheet: This shows how the bank’s financial condition is.
- Check NPA rate: Low NPA banks are considered more secure.
- Read customer reviews: Customer experience can also be a good sign.
- View RBI Report: RBI periodically releases reports on the financial situation of banks.
Beware of small banks
Recently there have been reports of many small cooperative banks and private banks sinking. Therefore, always deposit money in big and reliable banks. Be sure to check their financial condition before depositing money in small banks.
Will your money be safe?
If you deposit your money in big and safe banks like SBI, HDFC or ICICI, there will be no danger on your money. These banks are so important that the government will not allow them to fail in any situation.
Disclaimer:
The purpose of this article is only to give information. Consult an expert before taking any financial decision. The information given in the article is based on various sources, but reality may be different.
