Groww MF Launches ETF Tracking Nifty Private Bank Index- TRI; NFO Open

Groww Mutual Fund has announced the launch of a new exchange-traded fund (ETF), the Groww Nifty Private Bank ETF, which will track the Nifty Private Bank Index – Total Return Index (TRI). The scheme is aimed at giving investors exposure to India’s fast-growing private banking segment, offering a passive, rules-based investment option, which has been rated high-risk on the riskometer.

The new fund offer (NFO) opened on May 6 and will close on May 20, 2026. The scheme is open-ended, with units listed and traded on exchanges like other ETFs. It requires a minimum investment of Rs. 500 and in multiples of Re. 1 thereafter, and carries no exit load. 

The fund aims to mirror the performance of the Nifty Private Bank Index, subject to tracking error. This index comprises 10 leading private sector banks selected based on market capitalisation and liquidity, weighted using a free-float methodology. Among its top constituents are Axis Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra Bank, which together account for a significant portion of the index weight.

The fund offer comes at a time when private banks have been steadily strengthening their position in India’s financial ecosystem. Over the past decade, their share of total deposits has increased to nearly 38 per cent from around 21 per cent, reflecting growing customer preference and competitive strength.

Recent financial trends also highlight the sector’s momentum. Deposits have grown by approximately 76 per cent and loans by about 85 per cent over the last five years, indicating robust business expansion. Asset quality of the segment has improved as well, with declining non-performing assets (NPAs), and persisting healthy profitability metrics, such as return on equity (ROE) and return on assets (ROA).

The index itself appears relatively attractive from a valuation standpoint. It is currently trading at a price-to-earnings (PE) ratio of 17.54, below its five-year average of 19.20 and significantly lower than its 10-year average of 24.73.

The ETF structure provides investors with a low-cost and transparent route to participate in the private banking growth story without the need for active stock selection. By tracking a sector-specific index, the fund offers concentrated exposure to a segment that has been gaining share within the broader banking system. As with all market-linked investments, investors are advised to review scheme documents and consult financial advisors before investing.