Nifty PSU Bank PE Ratio
Valuation Percentile
Nifty PSU Bank's PB is cheaper than 66% of the last 5 years.
The Nifty PSU Bank PE ratio is 7.15 as of 1 October 2026, about 13% below its 5-year median of 8.23, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 8.78 | -18.56% |
| 15 Years | 8.79 | -18.70% |
| 10 Years | 8.70 | -17.77% |
| 7 Years | 8.44 | -15.28% |
| 5 Years | 8.23 | -13.12% |
| 3 Years | 7.99 | -10.51% |
| 1 Year | 8.29 | -13.80% |
Historical PE Ratio
Data gap. P/E is unavailable from 24 May 2016 to 24 May 2017 and 22 Feb 2018 to 28 Jan 2021 because the index’s aggregate earnings were negative, so no ratio could be published. The line bridges those dates, and medians and forward returns skip them.
Series start. P/E is published from 30 Aug 2007. Index values go back to 1 Jan 2004.
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 PSU Bank earnings grew +38.77% a year over the last 5 years, while the index moved +25.99% a year and its P/E went from 11.6 to 7.2.
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 PSU Bank
7 ETFs and 1 index fund track this index. Prices and NAVs as of 1 Oct 2026.
ETFs (7)
| ETF | Symbol | Price | NAV | Premium | 1Y |
|---|---|---|---|---|---|
| Nippon India ETF Nifty PSU Bank BeES | PSUBNKBEES | 89.3 | - | - | +5.03% |
| Kotak Nifty PSU Bank ETF | PSUBANK | 79.99 | - | - | - |
| ICICI Prudential Nifty PSU Bank ETF | PSUBNKIETF | 81.95 | - | - | +5.20% |
| DSP Nifty PSU Bank ETF | PSUBANKADD | 81.4 | - | - | +5.52% |
| HDFC NIFTY PSU BANK ETF | HDFCPSUBK | 81 | - | - | +5.43% |
Index funds (1)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| Groww Nifty PSU Bank Index Fund | Groww Asset Management Limited | 9.421 Oct 2026 | 2026 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 2007 returned a median of +10.63% (best +155.63%, worst -67.89%).
Today's PE of 7.15 sits in band 1 of 5 of this index's history (PE below 7.2). From this band, 5-year forward returns had a median of +5.99% a year and were positive in 98% of windows (581 windows since 2007).
View full performance and risk
Returns as of September 2026, from the NSE factsheet for the Nifty PSU Bank. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty PSU Bank
The Nifty PSU Bank contains 12 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 Nifty PSU Bank Index is designed to reflect the behavior and performance of the public sector 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
- For all other sectoral indices, the weight of each stock is capped at 33% and the weight of top 3 stocks is capped at 62%
Summarised from NSE's official methodology document (PDF) for the Nifty PSU Bank; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty PSU Bank PE ratio?
As of 1 October 2026, the Nifty PSU Bank PE ratio is 7.15. That is about 13% below its 5-year median of 8.23 and about 14% below its 1-year median of 8.29.
Is the Nifty PSU Bank undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 7.15 sits below every median window: 1-year (8.29), 3-year (7.99), 5-year (8.23), 7-year (8.44), 10-year (8.70), 15-year (8.79) and full-history (8.78).
What is a normal PE ratio for the Nifty PSU Bank?
Over the past five years its median PE has been 8.23, and over the past three years 7.99. Today's 7.15 is toward the lower end of that historical range.
How many stocks are in the Nifty PSU Bank?
The Nifty PSU Bank contains 12 stocks. By number of companies, its largest sectors are Financial Services (12 stocks).
What returns has the Nifty PSU Bank delivered?
As of September 2026, the Nifty PSU Bank total return (with dividends reinvested) is +7.30% over the past year and +27.73% 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 PSU Bank?
Over the year to September 2026, the Nifty PSU Bank had an annualized volatility (standard deviation of daily returns) of 23.80%. Its beta versus the Nifty 50 is 1.29, meaning it has moved more than the broad market.
What is a typical one-year return for the Nifty PSU Bank?
Across every one-year holding window since 2007, the Nifty PSU Bank total return has a median of +10.63%, with the best window at +155.63% and the worst at -67.89%. 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 PSU Bank currently trades at a PE of 7.15, in band 1 of 5 of its own PE history. Across 581 overlapping 5-year windows since 2007 that began in this band, the median forward return was +5.99% a year, positive in 98% of windows. A past distribution, not a prediction.
How fast have Nifty PSU Bank earnings grown?
Nifty PSU Bank earnings, measured as the index level divided by its P/E, grew +38.77% a year over the last 5 years, while the index itself moved +25.99% a year and its P/E fell from 11.59 to 7.15. Past growth, not a forecast.
How often is the Nifty PSU Bank rebalanced?
The Nifty PSU 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.