Nifty PSU Bank PE Ratio
Valuation Percentile
Nifty PSU Bank's PB is more expensive than 55% of the last 5 years.
The Nifty PSU Bank PE ratio is 7.75 as of 20 August 2026, about 7% below its 5-year median of 8.30, which places it in fairly valued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 8.80 | -11.93% |
| 15 Years | 8.83 | -12.23% |
| 10 Years | 8.77 | -11.63% |
| 7 Years | 8.48 | -8.61% |
| 5 Years | 8.30 | -6.63% |
| 3 Years | 8.01 | -3.25% |
| 1 Year | 8.29 | -6.57% |
Historical PE Ratio
Performance and risk
1-year holding windows since 2004 returned a median of +16.17% (best +155.63%, worst -67.89%).
Today's PE of 7.86 sits in band 2 of 5 of this index's history (PE 7.2 to 8.2). From this band, 5-year forward returns had a median of +3.70% a year and were positive in 85% of windows (345 windows since 2007).
View full performance and risk
Returns as of July 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 16 August 2026, sourced from NSE Indices. Weights as of 31 July 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 20 August 2026, the Nifty PSU Bank PE ratio is 7.75. That is about 7% below its 5-year median of 8.30 and about 7% below its 1-year median of 8.29.
Is the Nifty PSU Bank undervalued right now?
On a historical basis it screens as fairly valued. Its current PE of 7.75 sits below every median window: 1-year (8.29), 3-year (8.01), 5-year (8.30), 7-year (8.48), 10-year (8.77), 15-year (8.83) and full-history (8.80).
What is a normal PE ratio for the Nifty PSU Bank?
Over the past five years its median PE has been 8.30, and over the past three years 8.01. Today's 7.75 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 July 2026, the Nifty PSU Bank total return (with dividends reinvested) is +23.04% over the past year and +29.27% 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 July 2026, the Nifty PSU Bank had an annualized volatility (standard deviation of daily returns) of 23.76%. Its beta versus the Nifty 50 is 1.30, 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 2004, the Nifty PSU Bank total return has a median of +16.17%, 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 7.86, in band 2 of 5 of its own PE history. Across 345 overlapping 5-year windows since 2007 that began in this band, the median forward return was +3.70% a year, positive in 85% of windows. A past distribution, not a prediction.
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: 20 August 2026.