The scheme is designed to provide investors with exposure to India’s private banking segment through a passive, index-based approach. The ETF will seek to replicate the performance of the underlying index, subject to tracking error, with no assurance that the investment objective will be achieved.
The Nifty Private Bank Index comprises 10 private sector banks selected based on factors such as liquidity and market capitalisation, and follows a free-float market capitalisation weighting methodology. As of April 17, 2026, major constituents include Axis Bank, ICICI Bank, HDFC Bank and Kotak Mahindra Bank, which together account for a significant portion of the index weight.
According to data cited by the fund house, private sector banks have increased their share of total deposits in India’s banking system from about 21% a decade ago to around 38%, indicating a stronger presence in the financial ecosystem. Over the past five years, deposits have grown by about 76% and advances by around 85%, reflecting expansion in business activity and customer base.
Asset quality indicators have also improved, with gross and net non-performing assets declining over time. Profitability metrics such as return on equity and return on assets have remained stable, supported by better asset quality.
The fund will benchmark its performance against the Nifty Private Bank Index – TRI. It requires a minimum investment of ₹500 during the NFO period and does not carry an exit load.
The ETF will be managed by Nikhil Satam, Aakash Chauhan and Shashi Kumar. Investors are advised to review scheme-related documents and consider their financial objectives before investing.
