Investors are increasingly broadening their exposure to bank stocks beyond the leading four private sector banks and the largest PSU Bank , State Bank of India (SBI).

And that’s because a recent SEBI circular related to Nifty Bank Index , limits the weight of the top constituents of Nifty Bank Index at 20% from 33% currently, while the combined weight of the top three constituents cannot exceed 45%, compared to the current 62%.

The adjustment will be done in four tranches till March 31, 2026. HDFC Bank had a 28.49% weightage on the Nifty Bank, while ICICI Bank had a 24.38% weightage at the end of the September 2025.

As part of the diversification strategy, stocks like Punjab National Bank (PNB), the second-largest PSU bank, on Monday intra-day at Rs 124 was not too far from

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