Nifty PSU Bank Historical Returns
The Nifty PSU Bank index tracks public-sector (government-owned) banks. Figures come from the NAV of a fund that tracks it, so returns include dividends and are after fund costs.
Price history
Month-end values, on a log scale (equal distances are equal percentage changes). Hover a year-end point for its value.
About Nifty PSU Bank
The Nifty PSU Bank index tracks public-sector (government-owned) banks.
What it means for investors. PSU banks have gone through long cycles: deep falls during periods of bad loans and strong rises during recoveries. Its history is a reminder that a sector can lag for years.
Returns over time
| Series | 1Y | 3Y | 5Y | 10Y | 15Y | 20Y | Max fall | Data to |
|---|---|---|---|---|---|---|---|---|
| Nifty PSU Bank | 6.1% | 14.9% | 26.6% | 9.5% | 5.8% | n/a | −81% | 1 Oct 2026 |
Annualised (CAGR) for periods of a year or more, ending on each series' latest date. “n/a” means the series does not go back that far. Max fall: the largest fall from a previous peak over the whole history.
AMFI NAV history (daily NAV file; earlier history via mfapi.in, which republishes AMFI NAVs), stored and cleaned by MFIC. Proxy: Kotak Nifty PSU Bank ETF (total return after fund costs (proxy)). Data 13 Nov 2007 to 1 Oct 2026. Latest level: NSE daily index closing values. Returns use the fund NAV history, which includes dividends.
Calendar-year returns
| Year | Return |
|---|---|
| 2026 to 1 Oct | −6.7% |
| 2025 | 30.6% |
| 2024 | 14.7% |
| 2023 | 32.5% |
| 2022 | 73.5% |
| 2021 | 43.4% |
| 2020 | −30.9% |
| 2019 | −19.1% |
| 2018 | −16.9% |
| 2017 | 21.7% |
| 2016 | 4.5% |
| 2015 | −32.1% |
Over 18 complete calendar years since 2008, Nifty PSU Bank rose in 11. Best: 2009 (+76.2%). Worst: 2011 (−41.1%).
Year-end to year-end, from AMFI NAV history (daily NAV file; earlier history via mfapi.in, which republishes AMFI NAVs), stored and cleaned by MFIC.
Falls from peak and recovery
| Peak | Bottom | Fall | Months down | Back to peak | Months to recover | Events in the fall |
|---|---|---|---|---|---|---|
| Feb 2026 | Mar 2026 | −20.3% | 1 | not yet | — | — |
| Jun 2024 | Mar 2025 | −29.8% | 9 | Oct 2025 | 8 | General election results 2024; Union Budget 2024 |
| Nov 2010 | May 2020 | −80.7% | 114 | Dec 2023 | 43 | US credit rating downgrade; Taper tantrum; Rupee record low (2013); General election results 2014; and 11 more |
| Oct 2009 | Feb 2010 | −16.5% | 4 | Apr 2010 | 3 | — |
| Jan 2008 | Mar 2009 | −61.6% | 14 | Oct 2009 | 7 | January 2008 sell-off; Lehman Brothers bankruptcy; RBI cuts repo rate (GFC) |
Each fall of 10% or more from a previous high, measured on daily data. The 5 deepest are shown. “Back to peak” is the first date it regained the previous high.
Rolling returns: the range of outcomes
| Holding period | Periods | Median | Worst | Best | Middle half | Positive |
|---|---|---|---|---|---|---|
| 1 year | 215 | 11.8% | −65.4% | 122.6% | −18.2% to 42.9% | 57% |
| 3 years | 191 | 3.0% | −31.9% | 60.9% | −6.2% to 24.3% | 57% |
| 5 years | 167 | 1.7% | −20.8% | 45.8% | −4.1% to 9.0% | 56% |
| 10 years | 107 | 2.5% | −13.4% | 16.8% | −2.7% to 6.8% | 64% |
Every holding period starting at a month-end in the history (overlapping). Annualised for periods over a year.
How it has moved with other assets
| Compared with | Correlation | Months |
|---|---|---|
| Nifty 50 | 0.73 | 226 |
| Gold (domestic, ₹) | −0.13 | 226 |
| 10-year G-Sec (bond fund) | 0.06 | 226 |
| USD/INR | −0.48 | 226 |
| Nifty Bank | 0.78 | 141 |
| Nifty IT | 0.02 | 75 |
Correlation of monthly returns over the months both series have: +1 moves together, 0 unrelated, −1 opposite. Relationships change over time.
Nifty PSU Bank and the Nifty 50, year by year
| Year | Nifty PSU Bank | Nifty 50 |
|---|---|---|
| 2026 to 1 Oct | −6.7% | −13.6% |
| 2025 | 30.6% | 11.6% |
| 2024 | 14.7% | 9.6% |
| 2023 | 32.5% | 20.9% |
| 2022 | 73.5% | 5.3% |
| 2021 | 43.4% | 25.2% |
| 2020 | −30.9% | 15.5% |
| 2019 | −19.1% | 13.2% |
| 2018 | −16.9% | 4.3% |
| 2017 | 21.7% | 29.7% |
| 2016 | 4.5% | 4.0% |
| 2015 | −32.1% | −3.3% |
| 2014 | 61.8% | 31.8% |
| 2013 | −32.7% | 6.9% |
| 2012 | 42.9% | 28.3% |
Fund NAVs (AMFI), after fund costs.
Questions
- What has Nifty PSU Bank returned over the long run?
- Calculated from Kotak Nifty PSU Bank ETF, Nifty PSU Bank returned 9.5% a year over the 10 years to 1 Oct 2026, and 14.9% a year over 3 years. Past returns do not indicate future returns.
- What was the biggest fall in Nifty PSU Bank?
- In the data available from Nov 2007, the largest fall from a previous peak was −80.7%, from Nov 2010 to May 2020, and it regained the peak in Dec 2023 (43 months after the bottom). There were 5 falls of 10% or more, 4 of them 20% or more.
- How often has Nifty PSU Bank been positive over one year?
- Across 215 one-year periods starting at month-ends, 57% were positive; the range was −65.4% to 122.6%. Over five-year periods (167), 56% were positive, with annualised returns from −20.8% to 45.8%.
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