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Banking ETFs - List of Best Banking ETFs in India

Banking ETFs in India offer market-linked exposure to the banking and financial sector through a single tradable instrument. These ETFs track specific indices made up of leading public and private sector banks, allowing broad sector access without selecting individual stocks. Their structure combines lower costs, transparency, and sector-focused diversification, making them a distinct category within the ETF category.

Top Banking ETFs in 2025

Banking ETFs Stock Screener

Banking ETFs Stock Screener: Analyse & Filter Indian Stocks on Tickertape

Showing 1 - 12 of 12 results

last updated at 9:45 PM IST 
NameStocks (12)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.Nippon India ETF Nifty Bank BeESBANKBEESEquityEquity15,158.9715,158.97616.02616.02--0.780.782.332.337.747.7412.2312.23------0.000.00--1.021.02
2.Kotak Nifty Bank ETFBANKNIFTY1EquityEquity12,299.1512,299.15616.74616.74--0.730.732.962.967.777.7712.1212.12------0.000.00--1.101.10
3.SBI Nifty Bank ETFSETFNIFBKEquityEquity346.49346.49611.12611.12--0.800.802.322.327.667.6612.1412.14------0.000.00--1.081.08
4.Aditya Birla Sun Life Nifty Bank ETFABSLBANETFEquityEquity123.78123.7860.9660.96--0.760.762.202.207.707.7012.2712.27------0.000.00--1.061.06
5.HDFC Nifty Banking ETFHDFCNIFBANEquityEquity123.20123.2061.2361.23--0.720.722.622.627.747.7412.2512.25------0.000.00--1.061.06
6.Bajaj Finserv Nifty Bank ETFBANKBETFEquityEquity112.49112.4960.4860.48--0.900.902.012.017.677.6712.1912.19----------1.091.09
7.UTI Nifty Bank ETFUTIBANKETFEquityEquity56.0456.0461.5861.58--0.930.931.991.997.797.7912.3312.33------0.000.00--1.051.05
8.Mirae Asset Nifty Bank ETFBANKETFEquityEquity24.1224.12605.73605.73--0.740.742.272.277.777.7711.9911.99----------1.041.04
9.Baroda BNP Paribas Nifty Bank ETFBBNPNBETFEquityEquity21.5321.5360.0160.01--1.031.033.093.097.497.4911.7711.77----------1.141.14
10.DSP Nifty Bank ETFBANKETFADDEquityEquity9.809.8060.8560.85--0.780.783.553.557.647.6412.0612.06----------1.121.12
11.ICICI Prudential Nifty Bank ETFBANKIETFEquityEquity--61.1061.10--0.840.843.503.507.677.6712.1512.15----------1.081.08
12.Axis NIFTY Bank ETFAXISBNKETFEquityEquity--613.61613.61--0.670.672.442.447.687.6812.1812.18----------1.041.04

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Sector: Banking ETFs, Market Capitalisation: Sorted from highest to lowest.

Overview of Top Banking ETFs in India

Nippon India ETF Nifty Bank BeES

Nippon India ETF Nifty Bank BeES aims to track the performance of the Nifty Bank Index. It invests in large private and public sector banking stocks and provides exposure to India’s major banking segment.

HDFC Nifty Bank ETF

HDFC Nifty Bank ETF aims to mirror the performance of the Nifty Bank Index by investing in its constituent banking stocks. It offers a passive and cost-effective way to track the Indian banking sector.

Kotak Nifty Bank ETF

Kotak Nifty Bank ETF mirrors the Nifty Bank Index by investing in its constituent stocks. It offers a low-cost way to gain exposure to leading Indian banks and the overall banking sector’s performance.

SBI Nifty Bank ETF

SBI Nifty Bank ETF replicates the Nifty Bank Index and gives access to top banking companies listed in India. It is managed by SBI Mutual Fund and follows a passive investment approach.

UTI Nifty Bank ETF

UTI Nifty Bank ETF tracks the Nifty Bank Index by investing in the same stocks and proportions as the index. It offers exposure to India’s key banking institutions through a single product.

What are Banking ETFs?

Banking ETFs in India are exchange-traded funds that invest in shares of companies from the banking and financial services sector. Instead of buying individual bank stocks, a banking ETF allows exposure to multiple large and mid-sized banks through a single trade. This includes private banks, public sector banks, and in some cases, NBFCs, depending on the index the ETF tracks.

How to Invest in Banking ETFs?

Investing in banking ETFs in India using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in banking ETFs in India:

  1. Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
  2. Search for “Banking ETFs”: Go to Tickertape Stock Screener and set the “Sub-sector: equity” filter
  3. Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, or returns. You can create your own custom filter, in case your preferred parameters are not available. This can help you narrow down the top banking ETFs in India.
  4. Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in depth.
  5. Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
  6. Invest Through Your Broker: Once you’ve decided on a stock, you can place a buy order through your brokerage account linked to Tickertape.

You can stay updated with each of your favourite stocks’ alerts and announcements with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in Banking ETFs

Broader Exposure to the Banking Sector

Banking ETFs invest in a basket of leading public and private banks rather than a single stock, helping spread risk and track overall sector performance.

Lower Cost Compared to Actively Managed Funds

Most banking ETFs follow a passive structure, which generally keeps expense ratios lower compared with actively managed funds.

Aligned with India’s Economic Cycle

The sector plays a critical role in India’s economy, and banking ETFs often reflect broader economic shifts such as credit growth, monetary policy changes and financial activity.

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Risks of Investing in Banking ETFs

Sector Concentration Risk

Since the ETF only invests in the banking industry, events such as rising NPAs, slower loan growth or regulatory pressure may create higher volatility.

Market and Interest Rate Sensitivity

Changes in lending margins, policy rate movements and liquidity conditions can influence valuations and returns.

Benchmark Dependency

The performance relies on the index composition. If the index is heavily weighted toward a few large banks, returns may depend more on those companies.

Tracking Error

Expense ratios, rebalancing timelines or cash holdings may cause a difference between the ETF’s NAV and its benchmark performance.

Factors to Consider Before Investing in Banking ETFs

Benchmark Variation

Different banking ETFs track different indices such as Nifty Bank or broader financial indices, affecting sector mix and weightage between PSU and private banks.

Expense Ratio and Tracking Consistency

While banking ETFs typically cost less than active funds, tracking performance varies across products based on execution and fund structure.

Portfolio Weight Distribution

Many banking indices give larger allocation to major private banks, which may lead to performance depending heavily on a select group of stocks.

Interest Rate and Economic Sensitivity

Banks respond to macro trends including inflation, RBI policy updates, loan growth and credit quality, which may influence ETF movement across market cycles.

Conclusion

Banking ETFs provide exposure to India’s banking sector through a single tradable product. They bring sector-level diversification, lower costs due to passive management, and portfolio transparency since they track a set benchmark. However, their performance can be affected by sector-specific factors such as interest rate changes, regulatory updates, and higher weightage toward a few large banks. For a clearer view of how different Banking ETFs compare, tools like the Tickertape Screener can help analyse expense ratios, liquidity, tracking error, and other key parameters using built-in filters.

Frequently Asked Questions on Banking ETFs

  1. What is a banking ETF?

    A banking ETF is an exchange-traded fund that invests in a basket of banking and financial services companies listed on stock exchanges. It typically tracks an index such as the Nifty Bank Index and reflects the performance of the underlying banking sector.

  2. Are bank ETFs a good investment?

    Whether a banking ETF is suitable or not depends on factors such as market conditions, risk tolerance, investment horizon, and objectives. Since they focus on a single sector, their performance aligns closely with trends in the banking and financial industry.

  3. How do I choose a bank ETF?

    Different banking ETFs may vary based on benchmark index, expense ratio, liquidity, tracking error, and portfolio distribution. Reviewing these factors helps build context on how each ETF behaves relative to its benchmark and peers.

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  4. Are Banking ETFs passively managed?

    Most banking ETFs in India follow a passive investment style. They replicate the composition and weightage of the index they track instead of relying on active stock selection.

  5. What are the costs associated with Banking ETFs?

    Banking ETFs generally have lower costs than actively managed sector funds, but the exact charges vary across products. The main cost component is the expense ratio, and there may also be brokerage or transaction charges when buying or selling ETF units on the exchange.