The National Stock Exchange (NSE) has announced a major revision in the methodology for the Nifty Bank index, aligning it with SEBI’s new eligibility norms for indices traded in the futures & options (F&O) segment. As part of this update, Union Bank of India and Yes Bank will be added to the Nifty Bank index effective December 31, 2025 (close of December 30).
According to the press release issued on December 1, 2025, the Index Maintenance Sub-Committee has approved several structural changes to the index:
- Number of constituents increased from 12 to 14
- Top 3 stock weights capped at 19%, 14%, and 10%, respectively
- Non-F&O stocks capped individually at 4.5%, and cumulatively at 10%
- New selection framework based on six-month average free-float market capitalization
These revisions are being implemented in four monthly tranches—from December 2025 to March 2026—while the financial services index changes will be implemented in a single tranche.
Under the revised criteria, Union Bank of India (UNIONBANK) and Yes Bank (YESBANK) now qualify for inclusion in the benchmark. Their addition marks a significant shift, as public-sector lenders gain stronger representation in Nifty Bank following an expansion in methodology and regulatory alignment.
