NIFTY Bank TRI

The NIFTY Bank Total Returns Index (NIFTY Bank TRI), also widely known as Bank Nifty TRI, is the dividend-reinvested variant of the NIFTY Bank index maintained by NSE Indices Limited. The NIFTY Bank index comprises the 12 most liquid and capitalised banking sector stocks listed on the National Stock Exchange of India (NSE), spanning private sector banks, public sector banks, and small finance banks. The underlying price return index, NIFTY Bank (Bank Nifty), is one of the most actively traded derivatives contracts in the world by open interest, while the TRI variant serves as the benchmark for banking sector mutual fund schemes and ETFs in India.

Publisher and base data

• Publisher: NSE Indices Limited
• Base date: 1 January 2000
• Base value: 1,000
• Constituent count: 12

Constituent selection

The 12 constituents are selected from NSE-listed companies classified under the banking industry (AMFI-defined sector). Selection criteria:

• Free-float market capitalisation rank within the banking sector.
• Liquidity screening: minimum average daily turnover over the preceding six months.
• Impact cost: companies must meet NSE Indices’ impact cost threshold for large orders.
• Listing history: minimum six months of trading on NSE.

The index intentionally maintains a small constituent count (12) to ensure high liquidity; every constituent must have significant derivative market presence. The top four or five constituents (typically HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank, and Axis Bank) collectively account for 70-80% of the index weight.

Methodology

The NIFTY Bank uses free-float market capitalisation weighting. The index is reconstituted semi-annually with the same NSE Indices standard process as other NIFTY family indices. The TRI layer applies dividend reinvestment on ex-dividend dates; the banking sector has historically been a moderate dividend payer, with aggregate yields in the 0.5-1.2% per annum range.

Sectoral composition

All 12 constituents are banking companies. The internal segmentation as of 2024-25:

HDFC Bank alone has historically constituted 25-35% of the index. The concentration in a handful of large private banks means the index is sensitive to the credit cycle, interest rate environment, and the performance of a small number of institutions.

Historical returns

Banking indices are highly sensitive to the credit cycle. Post-2015, a multi-year non-performing asset (NPA) resolution cycle and recapitalisation of state banks produced a prolonged period of underperformance. From 2020, the cycle turned positive, driving strong returns through 2022-23. By 2024-25, normalised valuations have led to more moderate returns.

Mutual fund and ETF usage

The NIFTY Bank TRI is the benchmark for:

• Banking sector funds: SEBI-categorised sectoral/thematic funds focused on banking. Examples: ICICI Prudential Banking and Financial Services Fund, Mirae Asset Banking and Financial Services Fund, Tata Banking and Financial Services Fund.
• Bank Nifty ETFs: exchange-traded funds tracking the NIFTY Bank price return index; performance is typically disclosed against the TRI. Examples: Nippon India ETF Bank BeES, Kotak Nifty Bank ETF, HDFC NIFTY Bank ETF.
• Derivatives benchmark: Bank Nifty is the underlying for highly liquid monthly expiry futures and options on NSE; the derivatives market uses the price return index, not the TRI.

See also

• NIFTY 50 TRI
• NIFTY Pharma TRI
• NIFTY IT TRI
• NIFTY FMCG TRI
• National Stock Exchange of India
• Equity ETF (India)
• Mutual fund

References

1. NSE Indices Limited. “NIFTY Bank Index Methodology.” niftyindices.com. Accessed 2026.
2. NSE Indices Limited. “NIFTY Bank Fact Sheet.” niftyindices.com. 2025.
3. SEBI. Circular SEBI/HO/IMD/DF3/CIR/P/2018/04 on TRI benchmarks.
4. AMFI. “Sectoral and thematic fund benchmark mapping.” amfiindia.com. 2025.