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 13.60 as of 20 August 2026, about 15% below its 5-year median of 16.06, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 16.45 | -17.33% |
| 15 Years | 17.76 | -23.40% |
| 10 Years | 23.01 | -40.90% |
| 7 Years | 16.88 | -19.41% |
| 5 Years | 16.06 | -15.32% |
| 3 Years | 14.97 | -9.15% |
| 1 Year | 15.00 | -9.30% |
Historical PE Ratio
Performance and risk
1-year holding windows since 2000 returned a median of +16.56% (best +178.63%, worst -56.94%).
Today's PE of 13.60 sits in band 2 of 5 of this index's history (PE 13.1 to 15.2). From this band, 5-year forward returns had a median of +17.56% a year and were positive in 100% of windows (719 windows since 2003).
View full performance and risk
Returns as of July 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 16 August 2026, sourced from NSE Indices. Weights as of 31 July 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 20 August 2026, the Nifty Bank PE ratio is 13.60. That is about 15% below its 5-year median of 16.06 and about 9% below its 1-year median of 15.00.
Is the Nifty Bank undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 13.60 sits below every median window: 1-year (15.00), 3-year (14.97), 5-year (16.06), 7-year (16.88), 10-year (23.01), 15-year (17.76) and full-history (16.45).
What is a normal PE ratio for the Nifty Bank?
Over the past five years its median PE has been 16.06, and over the past three years 14.97. Today's 13.60 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 July 2026, the Nifty Bank total return (with dividends reinvested) is +3.06% over the past year and +11.47% 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 July 2026, the Nifty Bank had an annualized volatility (standard deviation of daily returns) of 16.73%. 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 2000, the Nifty Bank total return has a median of +16.56%, 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 13.60, in band 2 of 5 of its own PE history. Across 719 overlapping 5-year windows since 2003 that began in this band, the median forward return was +17.56% a year, positive in 100% of windows. A past distribution, not a prediction.
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: 20 August 2026.