Indian banking sector ETFs give you exposure to the engine of India's credit growth. From Nifty Bank (all large banks) to pure PSU or private bank plays — choose your banking exposure.
Compare All Banking ETFs →Nifty Bank Index includes the 12 most liquid Indian bank stocks across both private and public sector. BANKBEES (0.20% expense) is the go-to product for investors who want banking sector exposure without choosing between private and PSU banks. Currently dominated by HDFC Bank (~30%), ICICI Bank (~21%), Axis Bank (~11%) and Kotak Bank (~10%) — effectively ~80% private banks even in the composite index.
Tracks the Nifty Private Bank Index — concentrating on HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank. Private banks have consistently delivered superior ROE (15-18%) vs PSU banks (12-14%) due to better management, lower NPAs and stronger tech platforms. Best for investors bullish on India's private banking sector specifically.
PSU Bank ETFs are India's quintessential cyclical value play. These banks trade at 0.8-1.2x book (vs private banks at 2.5-4x) with dividend yields of 3-5%. After the massive NPA cleanup cycle (2015-2020), PSU banks have restored profitability — SBI delivered 15%+ ROE in FY24. Best held as a 5-10% tactical allocation during monetary easing cycles when PSU bank NPLs typically fall.