Nifty Private Bank Live Chart

O 23810.05

H 23810.05

L 23810.05

Nifty Private Bank Performance

Days Range

Low: 23,750.10
High: 23,970.00
Previous Close23,875.10
Open23,810.05
52W Range21,871.90 - 25,009.90
P/E Ratio15

Live Nifty Private Bank Stock List

Company
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Axis Bank

₹1,143.75

2.40 (0.21%)

₹1,137.00 - ₹1,145.00

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Bandhan Bank

₹183.00

1.85 (1.02%)

₹178.10 - ₹186.00

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City Union Bank

₹153.10

1.25 (0.82%)

₹151.70 - ₹154.95

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Federal Bank

₹163.85

0.00 (0.00%)

₹163.10 - ₹164.75

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HDFC Bank

₹1,466.05

1.95 (0.13%)

₹1,463.05 - ₹1,467.10

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ICICI Bank

₹1,130.75

0.25 (0.02%)

₹1,126.90 - ₹1,133.00

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IDFC First Bank

₹77.45

0.25 (0.32%)

₹77.20 - ₹77.55

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IndusInd Bank

₹1,417.30

4.95 (0.35%)

₹1,413.75 - ₹1,424.00

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Kotak Mah. Bank

₹1,696.95

0.40 (0.02%)

₹1,691.95 - ₹1,704.00

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RBL Bank

₹252.20

0.45 (0.18%)

₹251.60 - ₹253.75

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Nifty Private Bank Sectors

Sector Name Advances No Change Declined
Banks 9 10 0

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What is Nifty Private Bank Index?

NIFTY Private Bank is a sectoral index on the National Stock Exchange (NSE) which captures the performance of the Indian banks from the private sector on a real-time basis. It is constituted of 10 tradeable listed stocks that are engaged in the private banking and financial services business. Originally, the constituent’s weight was capped at 25%. However, since April 2019, the cap has been moved up to 33%.  

This NIFTY Private Bank index was launched on January 5, 2016, with the base date as April 1, 2005, and the base value at 1000. The NIFTY Private Bank share price since inception, has breached the levels of 17,000 at ~18x P/E multiples. It is reconstituted semi-annually in order to ensure that it continues to reflect the changing dynamics of the private banking industry.

The NIFTY Private Bank index is owned and managed by NSE Indices Limited, previously known as India Index Services & Products Limited. The Private Bank index is governed by a three-tier structure comprising:

  • BOD of NSE Indices: responsible for managing the index as per a detailed framework.
  • Index Advisory Committee (Equity): responsible for providing guidance on macro issues related to the index.
  • Index Maintenance Sub-Committee: responsible for the maintenance of the index’s methodology and stock selection criteria.

NIFTY Private Bank has a variant in the form of the NIFTY Private Bank Total Returns Index. This index is ideal for benchmarking fund portfolios and for launching ETFs, index funds, and other structured investment products.

Orgainisation
Nifty Private Bank
Exchange
NSE

How is NIFTY Private Bank calculated? How are stocks selected for inclusion in NIFTY Private Bank?

The NIFTY Private Bank share price is computed by weighting its 10 stocks on the basis of periodically capped free-float market capitalization relative to a base market capitalization value on a real-time basis.

In order to be considered for inclusion in the NIFTY Private Bank index, the securities must fulfill the following eligibility criteria:

  1. Should be listed on the National Stock Exchange.
  2. Should form a part of NIFTY 500.
  3. If the number of eligible stocks falls below 10, then in such cases, the deficit number of stocks shall be selected from the universe of top 800 ranked stocks based on both average daily turnover and average daily full market capitalization data of the previous six months from NIFTY 500’s universe.
  4. Should be a part of the private banking sector.
  5. Should exclude securities whose >50% ownership is in the hands of the central/state government.
  6. Should have a trading frequency of at least 90% in the past six months.
  7. Should have a listing history of at least six months.
  8. A recently listed company (IPO) can be included if it meets the above eligibility criteria for a period of three months instead of six months.
  9. Should be available for derivatives trading on NSE’s Futures & Options segment.
  10. Should adhere to the cap of 33% in case of a single stock and 62% for the top 3 stocks cumulatively at the time of rebalancing.

How is NIFTY Private Bank Calculated?

The index value is calculated as follows – 

Index Value = Current Index Market Capitalization/ (Base Free Float Market Capitalization * Base Index Value)

Where,

Current Index Market Capitalization = Shares o/s * IWF * Capping factor * Price 

IWF (Investible Weight Factors) = 1 as it is based on market capitalization method 

The NIFTY Private Bank index is rebalanced semi-annually based on six months of data, with the cutoff date being January 31 and July 31 of each year. The replacement of stocks in NIFTY Private Bank (if any) is implemented on a semi-annual basis and is effective from the last trading day of March and September. Securities are excluded in case of suspension, delisting or occurrence of corporate events of the kind involving arrangement/demerger/acquisition.

Nifty Private Bank FAQs

What are NIFTY Private Bank stocks?

NIFTY Private Bank index includes the top 10 ranked stocks from the private banking industry based on free-float market capitalization.

How to invest in NIFTY Private Bank?

You can invest in the Private bank index in the following ways:

  • Directly investing in individual stocks from the NIFTY Private Bank index with a demat account.
  • Investing in Exchange-Traded Funds (ETFs) that passively track the Private Bank index but be careful about expense ratios.

Should you invest in the NIFTY Private Bank index? Is the investment in NIFTY Private Bank safe?

The NIFTY Private Bank index has generated total returns of 18.67% since inception and 5.55% in the past 5 years. This high-beta index experiences volatile returns and has barely earned 0.49% dividend yield.

How has NIFTY Private Bank performed relative to NIFTY 50?

Private Bank NIFTY is not as closely correlated to the NIFTY 50 index. It has lately mostly underperformed the benchmark index. Besides, NIFTY 50 is far more diversified when it comes to both sector and stock exposure, making it a better index to invest in. However, due to the rise in population that is banked, the Private Bank index continues to show growth potential.

What is the objective of NIFTY Private Bank?

NIFTY Private Bank index’s basic objective is to serve as the benchmark for evaluating the performance of the private banking and financial services industry.