Nifty PSU Bank Index Stocks List & Sector Overview

My Deep Dive into the Nifty PSU Bank Index

I have tend to follow the Nifty PSU Bank Index as it clearly give me the pulse of how the banks of India perform in the public sector (PSU). All tradable public sector banks that are listed on the NSE are computed in this index that hence forms a comprehensive measure of this particular segment.

The index is calculated using a Periodic Capped Free Float methodology. This is a significant note because it entails limiting the weights of stock to ensure that no one bank overrides the index. To get a comprehensive picture I have always used the Total Returns Index version which includes the dividend returns.

Key Performance & Fundamental Metrics

The following is the vital statistics which I consider most interesting. The 5-year CAGR is also very high and this indicates a major rerating and turn of performance in the industry. It is striking in that the P/E is only 7.07 and an indication that the market still puts such banks at quite a steep discount relative to their privatized counterparts.

Also Read:

NIFTY Private Bank Stocks List 2025: Price & Weightage

Index Performance and Market Movers

To better understand the index's behavior, I've visualized its performance and current composition. The historical chart tells a story of extreme cyclicality, with massive peaks and troughs. The constituents chart clearly shows the immense weight of the State Bank of India, which single-handedly makes up nearly a third of the index.

Nifty PSU Bank Index Stocks List

For a more detailed analysis, here is the complete list of the 12 banks that constitute the index, updated with their latest market data. This table is interactive; you can search for a specific bank or sort any column to explore the data.

Index Fund & ETF Issuers

For those interested in gaining exposure to this sector through a passive instrument, I've noted that several asset management companies offer products that track or are benchmarked against the Nifty PSU Bank Index.

My Notes on the Index Methodology

The rules for this index are what give it its distinct PSU character, focusing on government ownership and liquidity.

• Eligibility Rule: Companies must have 51% or more of their outstanding share capital held by the Central and/or State Government, directly or indirectly. This is the defining criterion.
• Liquidity: Banks must rank within the top 800 by market cap and turnover and have a trading frequency of at least 90% in the last six months.
• Weight Capping: A single stock is capped at 33%, and the cumulative weight of the top 3 stocks is capped at 62% at the time of rebalancing.
• Rebalancing: The index is reconstituted on a semi-annual basis.