Nifty PSU Bank

Launched in 2007, the Nifty PSU Bank index reflects the performance of public sector banks in India. The index consists of 12 state-owned bank stocks. One of the key criteria for inclusion in this index is that the public sector bank should be listed on the National Stock Exchange (NSE). The stocks of the Nifty PSU Bank index are reviewed every six months and replaced if required. The largest constituent or stock of this index is India’s biggest lender State Bank of India (SBI). The other key constituents of the Nifty PSU Bank index are Bank of Baroda, Canara Bank, Punjab National Bank and Union Bank of India. This index is used for benchmarking mutual funds related to the PSU bank space. It is also used for launching index funds, exchange traded funds (ETF) and structured products. Since its launch in 2007, the PSU Bank Index has reported a return of 6.8% annually.