Banking Leaders of the BSE Bankex Index

Introduction

The Indian stock market is home to a variety of indices, each designed to capture the performance of specific sectors or the market as a whole. The BSE Bankex Index serves as a key benchmark, reflecting the performance of India’s leading banks. For investors aiming to gain exposure to the banking sector, this index offers a well-rounded view of the top bank stocks on the Bombay Stock Exchange.

 

In this article, we’ll explore the structure and importance of the BSE Bankex Index, how it's calculated, what makes a stock eligible for inclusion, and compare the top 3 constituent bank stocks. We’ll also list the top 10 banks currently featured in the index to help investors make informed decisions.

 

What Is the BSE Bankex Index?

The BSE Bankex Index focuses exclusively on the banking sector, tracking the performance of leading bank stocks listed on the Bombay Stock Exchange (BSE). Unlike diversified indices like the BSE Sensex or BSE 500, Bankex offers a concentrated view of the banking industry.

 

Introduced in June 2003, the index aims to highlight the banking sector’s impact on the Indian economy. It comprises the top 10 banks on the BSE, collectively representing over 90% of the sector’s total market capitalization.

 

History and Evolution of BSE Bankex

The BSE launched the Bankex Index on June 16, 2003, with a base value of 1000 points, using January 1, 2002, as the base date. The aim was to separately track the banking sector, which was gaining significance during that period. Originally comprising 12 stocks, it was designed to capture 90% of the banking sector’s market capitalisation.

Over time, the index has evolved in terms of methodology and composition to reflect the changing dynamics of India’s banking landscape.

 

How Is the BSE Bankex Index Calculated?

The BSE Bankex Index adopts a modified market capitalization-weighted model, where each stock’s weight is based on its float-adjusted market cap. However, to prevent dominance by a single entity, no stock can hold more than 22% weight in the index.

 

This approach creates a balanced and diversified index, limiting the influence of large-cap banks while still capturing the sector’s overall performance. All Bankex components are drawn from the BSE 500, ensuring high liquidity and quality.

 

Rebalancing Frequency

The index undergoes a review and adjustment twice a year—in June and December. To qualify for inclusion, stocks must first satisfy BSE 500 eligibility conditions, which include:

• Being part of the BSE All Cap Index for at least 6 months

• Recording trades on 80% or more trading sessions over the past 6 months

• Maintaining an average daily traded value above ?1 billion

Selection Criteria for Inclusion

To be added to the Bankex Index, a banking stock must meet the following requirements:

• Minimum Listing Period: At least 3 months of listing on the BSE

• Consistent Trading: Must have been traded on every trading day in the past 3 months

• Market Cap Rank: Should be among the top 100 companies based on average 3-month market capitalization

• Float-Adjusted Cap Weighting: Stocks are weighted using their float-adjusted market cap, subject to the 22% cap

This stringent screening ensures that only well-established, liquid, and influential banking stocks are included, making the BSE Bankex a credible and sector-specific benchmark for India’s banking industry.

 

Top 10 BSE BANKEX Index Stocks List by TTM Profit

 

 

Despite leading in TTM profit, SBI ranks third in both market cap and index weight.

HDFC Bank leads in both weightage and market capitalisation, closely followed by ICICI Bank.

Despite their smaller profits, Yes Bank, IndusInd Bank, and IDFC First Bank maintain modest representation in the index due to free-float considerations.

 

Top 3 Stocks in the BSE Bankex Index (2025)

Let’s take a look at the top 3 banking stocks that are driving the performance of the BSE Bankex Index this year:

1. State Bank of India (SBI)

State Bank of India (SBI) holds a strong leadership position in the BSE Bankex Index, driven by solid earnings and operational stability. As the most profitable player among its peers, SBI continues to set benchmarks in the Indian banking space.

 

Key Strengths Fueling SBI’s Performance

• Impressive Return Metrics: Over the past three years, SBI has maintained a healthy Return on Equity (ROE) of 18.48%, reflecting efficient capital utilization.

• Robust Asset Quality: The bank has kept its Net NPA average at 0.57%, signaling prudent risk management and effective recovery practices.

• Stable Deposit Base: SBI’s 38.72% CASA ratio provides a steady, low-cost funding base.

• Earnings Momentum: A notable 30.81% profit growth over the last three years showcases the bank’s ability to consistently scale its bottom line — strengthening its weight in the BSE Bankex Index.

Challenges to Monitor

• Operating Efficiency: The bank's cost-to-income ratio is relatively high at 51.64%, which could affect profitability if not optimized.

• Spike in Provisions: A steep 211.50% year-on-year rise in provisions and contingencies may pressure short-term earnings and investor sentiment.

 

2. HDFC Bank

A key heavyweight in the BSE Bankex Index, HDFC Bank continues to reinforce its position with sound financial discipline, consistent growth, and strong risk management. It continues to be a highly trusted name in India’s banking sector.

 

HDFC Bank’s Core Strengths

• Strong Return Indicators: With an average Return on Assets (ROA) of 1.91% and a 3-year ROE of 16.12%, the bank demonstrates high capital efficiency and profitability.

• Stable Margins: The bank has maintained a steady Net Interest Margin (NIM) of 3.42%, showcasing its ability to generate solid earnings from core operations.

• Asset Quality Excellence: With an average Net NPA of just 0.34% over the last three years, HDFC Bank has displayed exemplary control over credit risk.

• Sound Capital Position: A Capital Adequacy Ratio of 19.55% provides the bank with a robust cushion for growth and stability.

• Growth-Focused: Over the past three years, the bank has reported profit growth of 22.14%, income growth of 32.99%, and an impressive advances growth of 24.15%—all contributing to its strong presence in the BSE Bankex Index.

Area of Concern

• Weak CASA Growth: The bank reported a year-on-year CASA growth decline of 3.39%, indicating a short-term weakness in its low-cost deposit mobilization strategy.

3. ICICI Bank Ltd

A dominant name in the BSE Bankex Index, ICICI Bank has emerged as a strong contender in the private banking space with its well-balanced growth, solid profitability metrics, and robust asset quality.

 

ICICI Bank’s Key Strengths

• Strong Profitability Metrics: With a Return on Assets (ROA) of 2.09% and a 3-year ROE of 17.17%, the bank consistently generates value for its stakeholders.

• Healthy Net Interest Margin: A sustained NIM of 3.95% over the past three years showcases the bank’s ability to efficiently manage its interest-earning operations.

• Prudent Risk Management: An average Net NPA of just 0.59% signals strong credit control and effective loan book management.

• Robust Deposit Base: The CASA ratio of 42.18% indicates a strong share of low-cost deposits, enhancing overall profitability.

• Well-Capitalized: With a Capital Adequacy Ratio of 16.33%, ICICI Bank is well-prepared for future growth and market volatility.

• Growth-Oriented Performance: The bank has posted an impressive profit growth of 36.17% and income growth of 21.78% over the last three years, affirming its forward momentum in the BSE Bankex Index.

Limitations

Currently, ICICI Bank does not show any major financial or operational red flags, reinforcing its reputation as one of the more stable banking entities in the sector.

 

 A Comparative Outlook on SBI, HDFC Bank & ICICI Bank

 

SBI, HDFC Bank, and ICICI Bank continue to lead the BSE Bankex Index with strong financials, profitability, and sound asset management. SBI impresses with its scale and consistent profit growth, HDFC Bank excels in revenue performance and operational strength, while ICICI Bank offers robust returns and balanced financial growth. These three remain foundational to India's banking sector, delivering resilience and long-term value to investors.

Top Reasons to Consider the BSE Bankex Index

Investing in the BSE Bankex Index offers multiple benefits:

• Focused Exposure: Concentrated investments in the banking sector

• Diversification: Even within the sector, risks are spread across multiple institutions

• Research-Backed Selection: Constituents are chosen based on strict eligibility norms

• Growth Potential: Banks are central to India's economic expansion and credit growth

Investors can gain exposure by purchasing individual Bankex stocks or through index funds and ETFs that mirror its performance.

 

Conclusion

The BSE Bankex Index serves as a powerful tool for investors who wish to track or invest in India’s banking sector. With its carefully selected constituents and transparent methodology, it offers a reliable benchmark for evaluating bank stock performance. Whether you're a retail investor or a seasoned trader, monitoring this index can help you stay aligned with one of the most crucial sectors driving India's economy.

Want to start investing in Bankex stocks? Explore expert-backed tools and insights on Enrich Money and begin your journey in banking sector investments today.

 

Frequently Asked Questions

 

1. What is the BSE Bankex Index?

Tracking top public and private sector banks from the BSE 500, the BSE Bankex Index applies float-adjusted market cap weighting to determine stock influence.

 

2. What’s the current live value of the BSE?Bankex Index today?

You can view the live BSE Bankex Index  price anytime on the Enrich Money trading platform—your go-to hub for real-time market updates.

 

3. Can we buy the BSE Bankex Index?

You can’t buy the BSE Bankex Index directly, but you can invest in it through banking sector mutual funds or ETFs that mirror the index.

 

4. How can I track the top-performing and lagging stocks in the BSE Bankex Index each day?

The Enrich Money platform gives real-time updates on the bse bankex share price and top gainers and losers—perfect for staying ahead in your trading journey.

 

5. Why should investors track the BSE Bankex Index?

Tracking the BSE Bankex Index helps investors understand trends in India’s banking sector, making it easier to spot opportunities in leading bank stocks.

Disclaimer:  This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.