In India, the banking sector covers a significant portion of the stock market, and its weightage in the index is expected to remain among the highest sectors in 2026. This is why Banking ETFs have become an easy way for investors to gain exposure to multiple large banks with a single investment. India’s ETF market has already crossed ₹10 lakh crore. In this blog, we will explore the 2026 bank ETF list, the best bank ETFs in India, and PSU bank ETF options in a simple and easy-to-understand manner.
What Is a Banking ETF and How Does It Work?
A Banking ETF (Exchange Traded Fund) is an investment instrument that pools together shares of companies directly involved in the banking sector and sells them as units that trade on a stock exchange. This means you can gain exposure to multiple banks such as SBI, HDFC Bank, and ICICI Bank with a single investment, without having to buy each share individually.
How is this different from individual stocks?
When you buy the stock of a single bank, your risk depends solely on that company’s performance. However, a banking ETF includes many large banks in the banking sector, so the risk is spread out, and the portfolio becomes more diversified.
List of Banking ETFs in India 2026
- Nippon India ETF Nifty Bank BeES
- Kotak Nifty Bank ETF
- SBI ETF Nifty Bank
- UTI Nifty Bank ETF
- Nippon India ETF Nifty PSU Bank BeES
- ICICI Prudential Nifty Private Bank ETF
- ICICI Prudential Nifty Bank ETF
- Aditya Birla Sun Life Nifty Bank ETF
- HDFC Nifty Banking ETF
- Kotak Nifty PSU Bank ETF
1. Nippon India ETF Bank BeES
The Nippon India ETF Nifty Bank BeES is a sector-based ETF that tracks the Nifty Bank Index, providing investors with diversified exposure to India’s leading banks. This ETF is ideal for those who want to invest in the entire banking sector rather than selecting individual bank stocks. It boasts low costs and a strong AUM, ensuring good liquidity. With major names like HDFC Bank, ICICI Bank, and SBI included, it is considered a representative ETF for the banking sector.
Nippon India ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | Nippon India ETF Nifty Bank BeES |
| Ticker | BANKBEES |
| Fund House | Nippon India Mutual Fund |
| Current Price | ₹617.80 |
| 52 Week Low | ₹490.00 |
| 52 Week High | ₹637.13 |
| Expense Ratio | 0.19% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | ₹8,006.89 Cr |
| Exchange Listing | NSE & BSE |
| Benchmark | Nifty Bank Index |
2. Kotak Nifty Bank ETF
The Kotak Nifty Bank ETF is a banking sector ETF that tracks the Nifty Bank Index, offering investors exposure to a diversified portfolio of leading Indian banking stocks. This fund is suitable for investors seeking low-cost, diversified exposure to the banking sector. It boasts a low expense ratio and a strong AUM, ensuring good trading liquidity. With major banks like HDFC Bank, ICICI Bank, SBI, and Kotak Bank included in its portfolio, it’s a practical option for sector-based allocation.
Kotak Nifty Bank ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | Kotak Nifty Bank ETF |
| Fund House | Kotak Mahindra Mutual Fund |
| Current Price | 617.74 |
| 52 Week Low | ₹490.15 |
| 52 Week High | ₹651.60 |
| Expense Ratio | 0.15% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | 6,566.39 |
| Exchange Listing | NSE |
| Benchmark | Nifty Bank Index |
3. SBI ETF Nifty Bank
SBI ETF Nifty Bank is a sector-based exchange-traded fund that replicates the Nifty Bank Index. The fund’s portfolio is constructed according to the index composition, and therefore includes leading banking stocks in the country such as HDFC Bank, ICICI Bank, State Bank of India, and Axis Bank. This fund has been active in the market for a considerable time and is known for closely mirroring the movements of the banking index. The units are traded on the stock exchange, and the portfolio holdings are updated in line with index rebalancing.
SBI ETF Nifty Bank Data Table :
| Metric | Data |
|---|---|
| ETF Name | SBI ETF Nifty Bank |
| Fund House | SBI Mutual Fund |
| Current Price | 612.17 |
| 52 Week Low | 465.64 |
| 52 Week High | 625.74 |
| Expense Ratio | 0.19% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | 4,059.55 |
| Exchange Listing | NSE |
| Benchmark | Nifty Bank Index |
4. UTI Nifty Bank ETF
The UTI Nifty Bank ETF is an exchange-traded fund launched by UTI Mutual Fund that directly tracks the Nifty Bank Index. Its portfolio is constructed according to the index structure, and therefore includes both large private and public sector banks, such as HDFC Bank, ICICI Bank, SBI, and Kotak Mahindra Bank. The ETF’s holdings are adjusted periodically in line with index rebalancing. This fund is traded on the NSE and is designed to closely reflect the movements of the banking index.
UTI Nifty Bank ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | UTI Nifty Bank ETF |
| Fund House | UTI Mutual Fund |
| Current Price | ₹61.62 |
| 52 Week Low | ₹48.71 |
| 52 Week High | ₹63.38 |
| Expense Ratio | 0.18% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | 3,977.66 |
| Exchange Listing | NSE |
| Benchmark | Nifty Bank Index |
5. Nippon India ETF Nifty PSU Bank BeES
The Nippon India ETF Nifty PSU Bank BeES is a sector ETF that tracks the Nifty PSU Bank Index, and its portfolio is entirely based on public sector banks. According to the index composition, it includes government-owned banks such as SBI, Bank of Baroda, Canara Bank, Punjab National Bank, and Union Bank. The fund’s holdings are maintained according to the index weights and are updated during rebalancing. The ETF is traded on the stock exchange and is structured to mirror the index movement of the PSU banking segment.
Nippon India ETF Nifty PSU Bank BeES Data Table :
| Metric | Data |
|---|---|
| ETF Name | Nippon India ETF Nifty PSU Bank BeES |
| Fund House | Nippon India Mutual Fund |
| Current Price | 98.01 |
| 52 Week Low | 61.54 |
| 52 Week High | 102.28 |
| Expense Ratio | 0.49% |
| Avg. PE Ratio | 8.74 |
| Avg. PB Ratio | 1.26 |
| AUM | 3,935.24 |
| Exchange Listing | NSE |
| Benchmark | Nifty PSU Bank Index |
6. ICICI Prudential Nifty Private Bank ETF
The ICICI Prudential Nifty Private Bank ETF is a thematic banking ETF that tracks the Nifty Private Bank Index. Its portfolio focuses exclusively on private sector banks and is constructed according to the index weights. Holdings include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and other private banks. The fund’s composition is updated with index rebalancing to maintain tracking alignment. The ETF is traded on the exchange and is structured to reflect the index performance of the private banking segment.
ICICI Prudential Nifty Private Bank ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | ICICI Prudential Nifty Private Bank ETF |
| Fund House | ICICI Prudential Mutual Fund |
| Current Price | 29.04 |
| 52 Week Low | 23.87 |
| 52 Week High | 30.03 |
| Expense Ratio | 0.15% |
| Avg. PE Ratio | 20.49 |
| Avg. PB Ratio | 2.16 |
| AUM | 3,379.40 |
| Exchange Listing | NSE |
| Benchmark | Nifty Private Bank Index |
7. ICICI Prudential Nifty Bank ETF
The ICICI Prudential Nifty Bank ETF is an index-based banking ETF that tracks the performance of the Nifty Bank Index. Its portfolio is constructed according to the index weightage, and therefore includes large-cap and actively traded banking stocks such as HDFC Bank, ICICI Bank, SBI, Axis Bank, and Kotak Mahindra Bank. The fund was launched in 2019 and has been trading regularly on the exchange since then. Holdings and weights are adjusted periodically according to index rebalancing to maintain consistent index tracking.
ICICI Prudential Nifty Bank ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | ICICI Prudential Nifty Bank ETF |
| Fund House | ICICI Prudential Mutual Fund |
| Current Price | ₹61.23 |
| 52 Week Low | 47.55 |
| 52 Week High | 63.19 |
| Expense Ratio | 0.15% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | 3,222.56 |
| Exchange Listing | NSE |
| Benchmark | Nifty Bank Index |
8. ICICI Prudential Nifty Bank ETF
The ICICI Prudential Nifty Bank ETF is an index-based banking ETF that tracks the performance of the Nifty Bank Index. Its portfolio is constructed according to the index weightage, and therefore includes large-cap and actively traded banking stocks such as HDFC Bank, ICICI Bank, SBI, Axis Bank, and Kotak Mahindra Bank. The fund was launched in 2019 and has been trading regularly on the exchange since then. Holdings and weights are adjusted periodically according to index rebalancing to maintain consistent index tracking.
ICICI Prudential Nifty Bank ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | Aditya Birla Sun Life Nifty Bank ETF |
| Fund House | Aditya Birla Sun Life Mutual Fund |
| Current Price | ₹61.13 |
| 52 Week Low | ₹47.55 |
| 52 Week High | ₹63.26 |
| Expense Ratio | 0.14% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | ₹2,864.72 Cr |
| Exchange Listing | NSE |
| Benchmark | Nifty Bank Index |
9. HDFC Nifty Banking ETF
The HDFC Nifty Banking ETF is an exchange-traded fund launched by HDFC Mutual Fund that tracks the Nifty Bank Index. The ETF’s portfolio is constructed according to the index weights, and therefore includes major banking stocks in India such as HDFC Bank, ICICI Bank, SBI, Axis Bank, and Kotak Mahindra Bank. The fund’s holdings are adjusted periodically in line with index rebalancing. The units are traded on the stock exchange, and the ETF’s structure is designed to closely mirror the movements of the banking index.
HDFC Nifty Banking ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | HDFC Nifty Banking ETF |
| Fund House | HDFC Mutual Fund |
| Current Price | ₹61.39 |
| 52 Week Low | ₹48.51 |
| 52 Week High | ₹63.63 |
| Expense Ratio | 0.16% |
| Avg. PE Ratio | 16.72 |
| Avg. PB Ratio | 2.02 |
| AUM | ₹2,851.90 Cr |
| Exchange Listing | NSE |
| Benchmark | Nifty Bank Index |
10. Kotak Nifty PSU Bank ETF
The Kotak Nifty PSU Bank ETF is a sector-focused exchange-traded fund that tracks the Nifty PSU Bank Index. The ETF’s portfolio consists of shares of public sector banks and is maintained according to the index weightage. Holdings include government-owned banks such as SBI, Bank of Baroda, Canara Bank, Punjab National Bank, and Union Bank. The fund’s composition is updated regularly with index rebalancing to maintain accurate index tracking. ETF units are traded on the stock exchange and reflect the index movement of the PSU banking segment.
Kotak Nifty PSU Bank ETF Data Table :
| Metric | Data |
|---|---|
| ETF Name | Kotak Nifty PSU Bank ETF |
| Fund House | Kotak Mahindra Mutual Fund |
| Current Price | ₹878.50 |
| 52 Week Low | ₹552.00 |
| 52 Week High | ₹914.72 |
| Expense Ratio | 0.49% |
| Avg. PE Ratio | 8.74 |
| Avg. PB Ratio | 1.26 |
| AUM | 2,251.64 |
| Exchange Listing | NSE |
| Benchmark | Nifty PSU Bank Index |
Read Also: Best Commodity ETFs in India
Risks of Investing in Banking ETFs
- Sector Concentration Risk : Banking ETFs track only banking sector stocks. If the entire banking sector weakens due to factors like slow loan growth or rising NPAs the ETF’s value is directly impacted. This presents a higher sector-specific risk compared to diversified index funds.
- Drawdown Risk During Credit Stress : When the economy experiences deteriorating credit quality or increased defaults, banking stocks can fall sharply. In such phases, banking ETFs may show greater declines than the broader market.
- PSU Bank Policy & Governance Risk : PSU bank ETFs have a higher weighting of government-owned banks. These are more susceptible to policy decisions, recapitalization, mergers, or regulatory changes, which can lead to rapid price movements.
- High Beta Volatility : The banking index typically exhibits higher volatility than the overall market. The ETF’s price can fluctuate sharply in response to interest rate changes, RBI policies, and credit cycle news.
- Liquidity Risk (in smaller ETFs) : Banking ETFs with low AUM (Assets Under Management) and low trading volume may have wider bid-ask spreads. This increases the difference between the buying and selling prices.
- How to Manage Risk : Keep sector ETFs as a limited portion of your portfolio, use staggered buying, and avoid making a very large allocation to a single ETF.
Read Also: Best Index ETFs in India
Conclusion
Banking ETFs offer a straightforward and transparent way to gain index-based exposure to the banking sector in 2026. Bank Nifty, Private Bank, and PSU Bank ETFs represent different sector mixes, so it’s crucial to consider the index type, expense ratio, AUM, and liquidity when making a selection. This tool is useful for sector allocation, but building an entire portfolio solely on banking ETFs is not considered a balanced strategy. Always keep diversification in mind. Invest in Banking ETFs with Pocketful – enjoy zero brokerage on ETFs and stocks, advanced trading tools, and an easy-to-use platform.
Frequently Asked Questions (FAQs)
How is a Bank ETF different from a PSU Bank ETF?
A Bank ETF tracks a broad banking index including both private and public sector banks, while a PSU Bank ETF tracks only public sector (government-owned) banks.
How can I buy a Bank ETF in India?
Bank ETFs are bought on the exchange through a demat account, just like shares.
Is a Bank ETF risky?
Yes, Bank ETFs are sector-based, so they are subject to higher volatility.
Does a Bank ETF give dividends?
The dividend of a Bank ETF is usually adjusted in the NAV (Net Asset Value).
What should I check before selecting a Bank ETF?
Before choosing a Bank ETF, check the expense ratio, AUM (Assets Under Management), and trading volume.
