Nifty PSU Bank Stocks List & Weightage in 2024

The complete Nifty PSU bank stocks list along with it’s weightage is posted below. Let’s take a in-depth look at the PSU Bank Index.

What is Nifty PSU Bank Index?

The Nifty PSU Bank Index is a stock market index created by NSE. The Index is designed to reflect the performance and behavior of PSU bank stocks. PSU stands for Public Sector Undertaking. PSU banks are owned and operated by the government of India. While the shares of PSU bank are traded in the market, the majority of shares are owned by the government of India. These banks are also known as nationalized banks.

These banks form the backbone of India’s banking infrastructure access even in rural areas. They operate branches even in the remote places just to bring banking access to every Indian.

The Nifty PSU Bank Index consist of 12 PSU banking stocks. The stocks and their weightage are given below. The Index is calculated by using free float capitalization method. You can read more about free float capitalization method here.

Nifty PSU Bank Stocks List with Weightage

The highest weightage in the Nifty PSU bank index is given to State Bank Of India at 32.69% followed by Bank of Baroda at 15.92%.

No.	Company Name	Symbol	Weightage
1	State Bank of India	SBIN	32.69%
2	Bank of Baroda	BANKBARODA	15.92%
3	Canara Bank	CANBK	12.63%
4	Punjab National Bank	PNB	11.98%
5	Union Bank of India	UNIONBANK	9.49%
6	Indian Bank	INDIANB	5.91%
7	Bank of India	BANKINDIA	5.49%
8	Bank of Maharashtra	MAHABANK	2%
9	Indian Overseas Bank	IOB	1.47%
10	Central Bank of India	CENTRALBK	1.18%
11	UCO Bank	UCOBANK	1.01%
12	Punjab & Sind Bank	PSB	0.26%

Nifty PSU Index Chart

Nifty PSU Index Stocks Fundamentals

*- Average daily standard deviation Annualized.

Nifty PSU Index has given a total return of 70.47% in the past 1 year at the time of writing this post.

Nifty PSU Index vs Other Index

As you can see from the comparison of Nifty PSU index with other indexes, Nifty PSU index has been the best performer among all of the index in the past one year.

Eligibility Criteria For a Stock to be Added to the Index

1. Public sector banks must rank within top 800 based on both average daily turnover and average daily full market capitalization for the last six months.
2. Companies must have 51% of their outstanding share capital held by the Central Government and/or State Government, directly or indirectly.
3. The company’s trading frequency should be at least 90% in the last six months.
4. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
5. Final selection of companies shall be done based on the free-float market capitalization of the companies.
6. Weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and weightage of top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.

Index Rebalancing

Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.

Index Governance

A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee.

FAQ on Nifty PSU Bank Index