CNX Bank Index

BANK Nifty Sparklines The Indian banking Industry has been undergoing major changes, reflecting a number of underlying developments. Advancement in communication and information technology has facilitated growth in internet-banking, ATM Network, Electronic transfer of funds and quick dissemination of information. Structural reforms in the banking sector have improved the health of the banking sector. The reforms recently introduced include the enactment of the Securitization Act to step up loan recoveries, establishment of asset reconstruction companies, initiatives on improving recoveries from Non-performing Assets (NPAs) and change in the basis of income recognition has raised transparency and efficiency in the banking system. Spurt in treasury income and improvement in loan recoveries has helped Indian Banks to record better profitability. In order to have a good benchmark of the Indian banking sector, India Index Service and Product Limited (IISL) has developed the CNX Bank Index. CNX Bank Index is an index comprised of the most liquid and large capitalised Indian Banking stocks. It provides investors and market intermediaries with a benchmark that captures the capital market performance of Indian Banks.The index will have 12 stocks from the banking sector which trade on the National Stock Exchange. Market Representation 1. CNX Bank Index represent about 14.66% of the free float market capitalization of the stocks listed on NSE and 84.66% of the free float market capitalization of the stocks forming part of the banking sector universe as on June 30, 2011. 2. The total traded value for the last six months of all the CNX Bank Index constituents is approximately 14.11% of the traded value of all stocks on the NSE and 82.90% of the traded value of the stocks forming part of the banking sector. Methodology The index is a free float market capitalization weighted index with base date of January 01, 2000, indexed to a base value of 1000.

Selection Criteria

Selection of the index set is based on the following criteria: 1. Company's market capitalisation rank in the universe should be less than 500 2. Company's turnover rank in the universe should be less than 500 3. Company's trading frequency should be at least 90% in the last six months. 4. Company should have a positive networth. 5. A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.

List of CNX Bank Index Stocks | Daily Values

Other IISL IndicesIndices

An Index is used to give information about the price movements of products in the financial, commodities or any other markets. Financial indexes are constructed to measure price movements of stocks, bonds, T-bills and other forms of investments. Stock market indexes are meant to capture the overall behaviour of equity markets. A stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. An Index is calculated with reference to a base period and a base index value. Stock market indexes are useful for a variety of reasons. Some of them are :

They provide a historical comparison of returns on money invested in the stock market against other forms of investments such as gold or debt. They can be used as a standard against which to compare the performance of an equity fund. It is a lead indicator of the performance of the overall economy or a sector of the economy Stock indexes reflect highly up to date information Modern financial applications such as Index Funds, Index Futures, Index Options play an important role in financial investments and risk management

Top

BANK NIFTY Index Constituent Stocks

Company Curr. Chg(% val(Rs.) ) 1,887.3 5 MCap(Cr) P/E P/B V EV/EBIDT A

St Bk of India

0.82

119,844.8 4 110,052.0 9 101,387.7 6

17.2 0.00 8 26.2 4.16 1 18.5 1.80 8 12.4 2.25 8 39.6 4.97 2 6.95 1.47 6.82 1.37 5.35 1.07 7.92 1.10 6.79 1.14 5.93 0.79 5.84 0.83

17.07

HDFC Bank

470.65

0.75

19.25

ICICI Bank

879.85

2.34

17.68

Axis Bank

1,086.5 5

-0.62

44,800.63

17.96

Kotak Mah. Bank

473.90

0.58

35,009.84

21.58

Punjab Natl.Bank Bank of Baroda Canara Bank Bank of India Union Bank (I) IDBI Bank Oriental Bank

980.75 765.30 451.15 330.45 251.85 104.45 299.15

-0.52 1.16 0.24 0.61 2.21 -0.76 -1.06

31,071.14 30,174.25 19,985.95 18,058.43 13,205.25 10,284.25 8,728.00

16.07 16.64 14.95 17.62 16.03 13.51 13.64