Nifty Bank PE Ratio
Valuation Percentile
Nifty Bank's PB is cheaper than 100% of the last 5 years.
The Nifty Bank PE ratio is 12.91 as of 1 October 2026, about 19% below its 5-year median of 15.95, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 16.43 | -21.42% |
| 15 Years | 17.75 | -27.27% |
| 10 Years | 22.64 | -42.99% |
| 7 Years | 16.64 | -22.42% |
| 5 Years | 15.95 | -19.06% |
| 3 Years | 14.88 | -13.24% |
| 1 Year | 14.70 | -12.18% |
Historical PE Ratio
Series start. P/E is published from 15 Sept 2003. Index values go back to 1 Jan 2000.
Earnings
Index earnings are the profits behind the index level: the closing value divided by the P/E ratio, in index points. The line moves in steps because it changes only when trailing four-quarter profits are updated or the constituents change. Compare it with price to see whether a move came from earnings or from a change in what investors pay for them.
Nifty Bank earnings grew +22.34% a year over the last 5 years, while the index moved +7.90% a year and its P/E went from 24.2 to 12.9.
Earnings growth is annualised from the last trading day at or before the start of each window to 1 Oct 2026. Price growth uses the index level over the same two dates, excluding dividends. EPS is undefined on days with no published P/E, so those days are skipped. Past growth, not a forecast.
Ways to invest in Nifty Bank
14 ETFs and 10 index funds track this index. Prices and NAVs as of 1 Oct 2026.
ETFs (14)
| ETF | Symbol | Price | NAV | Premium | 1Y |
|---|---|---|---|---|---|
| Nippon India ETF Nifty Bank BeES | BANKBEES | 565.7 | - | - | -1.44% |
| Mirae Asset Nifty Bank ETF | BANKETF | 556.12 | - | - | -1.54% |
| SBI Nifty Bank ETF | SETFNIFBK | 562 | - | - | -1.37% |
| Kotak Nifty Bank ETF | BANKNIFTY1 | 56.5 | - | - | - |
| ICICI Prudential Nifty Bank ETF | BANKIETF | 57.05 | - | - | -1.25% |
Index funds (10)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| Motilal Oswal Nifty Bank Index Fund | Motilal Oswal Asset Management Company Limited | 20.261 Oct 2026 | 2019 |
| Navi Nifty Bank Index Fund | Navi AMC Limited | 14.381 Oct 2026 | 2022 |
| ICICI Prudential Nifty Bank Index Fund | ICICI Prudential Asset Management Company Limited | 15.731 Oct 2026 | 2022 |
| Nippon India Nifty Bank Index Fund | Nippon Life India Asset Management Limited | 11.771 Oct 2026 | 2024 |
| Axis Nifty Bank Index Fund | Axis Asset Management Co. Ltd. | 11.271 Oct 2026 | 2024 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 2003 returned a median of +16.08% (best +178.63%, worst -56.94%).
Today's PE of 12.91 sits in band 1 of 5 of this index's history (PE below 13.1). From this band, 5-year forward returns had a median of +21.61% a year and were positive in 100% of windows (1,095 windows since 2003).
View full performance and risk
Returns as of September 2026, from the NSE factsheet for the Nifty Bank. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty Bank
The Nifty Bank contains 14 constituents.
Constituent list as of 4 October 2026, sourced from NSE Indices. Weights as of 30 September 2026, from the NSE factsheet.
How this index works
- Selection
- The index is designed to reflect the behaviour and performance of the large and liquid banks.
- Rebalanced
- Semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July.
- Weight cap
- In the case of Nifty Bank index, the weight of top 3 stocks is capped at 19%, 14% and 10% respectively.
Summarised from NSE's official methodology document (PDF) for the Nifty Bank; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty Bank PE ratio?
As of 1 October 2026, the Nifty Bank PE ratio is 12.91. That is about 19% below its 5-year median of 15.95 and about 12% below its 1-year median of 14.70.
Is the Nifty Bank undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 12.91 sits below every median window: 1-year (14.70), 3-year (14.88), 5-year (15.95), 7-year (16.64), 10-year (22.64), 15-year (17.75) and full-history (16.43).
What is a normal PE ratio for the Nifty Bank?
Over the past five years its median PE has been 15.95, and over the past three years 14.88. Today's 12.91 is toward the lower end of that historical range.
How many stocks are in the Nifty Bank?
The Nifty Bank contains 14 stocks. By number of companies, its largest sectors are Financial Services (14 stocks).
What returns has the Nifty Bank delivered?
As of September 2026, the Nifty Bank total return (with dividends reinvested) is +0.65% over the past year and +8.72% annualized over the past five years. One-year figures are absolute; multi-year figures are annualized (CAGR). Data from the NSE factsheet.
How volatile is the Nifty Bank?
Over the year to September 2026, the Nifty Bank had an annualized volatility (standard deviation of daily returns) of 16.98%. Its beta versus the Nifty 50 is 1.15, meaning it has moved more than the broad market.
What is a typical one-year return for the Nifty Bank?
Across every one-year holding window since 2003, the Nifty Bank total return has a median of +16.08%, with the best window at +178.63% and the worst at -56.94%. Based on NSE Total Returns Index data; a past distribution, not a prediction.
What have 5-year returns been from PE levels like today's?
The Nifty Bank currently trades at a PE of 12.91, in band 1 of 5 of its own PE history. Across 1,095 overlapping 5-year windows since 2003 that began in this band, the median forward return was +21.61% a year, positive in 100% of windows. A past distribution, not a prediction.
How fast have Nifty Bank earnings grown?
Nifty Bank earnings, measured as the index level divided by its P/E, grew +22.34% a year over the last 5 years, while the index itself moved +7.90% a year and its P/E fell from 24.19 to 12.91. Past growth, not a forecast.
How often is the Nifty Bank rebalanced?
The Nifty Bank is rebalanced semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July. Details are in the official NSE methodology document.
Last updated: 1 October 2026.