Archive · 3 Dec 2025
YES Bank, Union Bank to see $250 mn inflows on Nifty Bank inclusion
YES Bank and Union Bank of India are going to get a lot of money, about $250 million in total, because they are being added to an important list of bank stocks called the Nifty Bank index.
This list is being changed to include 14 banks instead of 12.
The changes will happen in four steps starting from the end of 2025.
Some other banks like HDFC Bank and ICICI Bank might lose money because of this change.
The new rules also say that the top three banks in the list can't be too big, with a combined limit of 43%.
This means the money will be more evenly spread among the banks in the list.
YES Bank and Union Bank of India to see combined $250 million inflows from Nifty Bank index inclusion.
Nifty Bank index expanded to 14 constituents from 12, with new selection criteria based on six-month average free-float market capitalization.
Implementation in four tranches from December 2025 to March 2026, with the first tranche effective December 31, 2025.
HDFC Bank and ICICI Bank likely to see outflows of $322 million and $348 million, respectively, while other banks may see up to $78 million in inflows.
Top three index constituents' weights capped at 19%, 14%, and 10% respectively, totaling 43%.
- Who
- YES Bank, Union Bank of India, HDFC Bank, ICICI Bank, other banks
- What
- Inflows and outflows due to Nifty Bank index changes
- When
- Implementation from December 31, 2025, in four tranches
- Where
- National Stock Exchange of India (NSE)
- Why
- Revisions in Nifty Bank index methodology to include 14 stocks
- Implementation Period
- December 2025 to March 2026
- New Index Size
- 14 constituents
- Weight Cap for Top 3
- 43% combined
- Inflows for Other Banks
- Up to $78 million
