ICICI Prudential Mutual Fund Launches ICICI Prudential Nifty Private Bank Index Fund

Highlights:                

• The scheme aims to invest in India’s private sector banks, which are central to the country’s economic progress. These banks have consistently demonstrated high profitability, improving market share in loans and deposits, sound capitalisation, and low levels of non-performing assets

• The scheme follows a passive, rules-based strategy that mirrors the Nifty Private Bank TRI, providing transparent, disciplined exposure to India’s private banks

• The scheme is designed for investors looking to capitalise on India’s growing banking sector, with private banks contributing 37% of the Nifty 50’s profits in FY2025 despite representing only 28% of its market capitalisation*

*Source - Nifty Indices and Capital Line for the Reported Profit After Tax data, Nifty 50 and Nifty Private Bank index constituents as on June 24,       2025 and Reported, Profit After Tax data as on Financial Year 2024-25.

Mumbai, July 01, 2025: ICICI Prudential Mutual Fund announces the launch of ICICI Prudential Nifty Private Bank Index Fund, an open-ended index scheme replicating Nifty Private Bank Index. This scheme offers investors an opportunity to invest in a basket of India’s private banks, which have delivered fundamentals and supported India’s economic expansion.

Abhijit Shah, Chief Marketing and Digital Business Officer at ICICI Prudential AMC, said:
“Through this product, we offer investors a unique opportunity to access the strength of India’s private banking sector in a simple, cost-effective manner. These banks have demonstrated high profitability, robust asset quality, and capital adequacy, making them a potential long-term investment.”

Private banks have shown growth in their share of the Indian credit and deposit markets over the past two decades. Loan market share rose from 13% in FY2005 to 36% in FY2025, and deposit market share improved from 11% to 32% over the same period.

The Nifty Private Bank Index has outperformed the Nifty 50 TRI over several rolling periods, delivering a 3-year CAGR of 19.7% versus 18.5% for the Nifty 50 TRI.

Additionally, private banks currently trade at a more reasonable P/E ratio of 17.6 compared to the Nifty 50’s 22.3, with a lower P/B ratio of 2.4 against 3.6, offering relatively attractive valuations.

Key Features:

Index Methodology: The Nifty Private Bank Index selects the top 10 private banks from the Nifty 500 based on free-float market capitalisation. Each stock is capped at the lower of 23% or a combined 62% for the top three constituents during each semi-annual rebalance.

Strong Fundamentals:

• Net Interest Income (NII) and Net Interest Margin (NIM) have steadily improved from ₹50,000 crore in FY2005 to nearly ₹400,000 crore in FY2025 with NIM rising to 4.6%.

• Capital Adequacy Ratios remain well above regulatory requirements, at 17.29% in FY2025.

• Net Non-Performing Assets (NPAs) have declined to a 10-year low of 0.50% in FY2025.

Why Invest in This scheme?

• Direct Exposure: Invest in India’s top private banks, one of the driver of the economy

• Transparent & Rule-Based: Portfolio construction mirrors the Nifty Private Bank Index methodology

• Low Cost: Passive structure offers an efficient way to gain exposure

• Accessible: Minimum investment of ₹1,000, with systematic investment options like SIPs and STPs available

• Non- Demat Holders : Will allow non demat account holders to seek exposure to private bank segment of the market

Scheme Details:

• NFO Period: July 1 – July 14, 2025

• Investment Strategy: Replicate the Nifty Private Bank TRI with a passive approach

• Exit Load: Nil

• SIP Amount - DURING NEW FUND OFFER PERIOD/ DURING ONGOING OFFER PERIOD:

Daily, Weekly, Fortnightly, Monthly SIP^$: Rs. 1000/- (plus in multiple of Re. 1/-) Minimum installments: 6

Quarterly SIP^$: Rs. 1000/- (plus in multiple of Re. 1/-) Minimum installments – 4

^$The applicability of the minimum amount of installment mentioned is at the time of registration only

• Benchmark: Nifty Private Bank TRI

• Fund Managers: Nishit Patel and Ms. Ashwini Shinde

For media queries, please contact:

Adil Bakhshi

Principal PR & Corporate Communication 

Email: PR@icicipruamc.com 

Phone: 91-22-66470274

Riskometer & Disclaimers:

Disclaimer by the National Stock Exchange of India Limited: It is to be distinctly understood that the permission given by National Stock Exchange of India Limited (NSE) should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the ‘Disclaimer Clause of NSE’.

Disclaimer Clause of the BSE Limited Disclaimer of NSE Indices Limited: The Products offered by “ICICI Prudential Mutual Fund/ICICI Prudential Asset Management Company Limited” or its affiliates is not sponsored, endorsed, sold or promoted by NSE Indices Limited (NSE Indices) and its affiliates. NSE Indices and its affiliates do not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) to the owners of these Products or any member of the public regarding the advisability of investing in securities generally or in the Products linked to their underlying indices to track general stock market performance in India. Please read the full Disclaimers in relation to the underlying indices in the respective Scheme Information Document.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer: All figures and other data given in this document are dated as of May 31, 2025 unless stated otherwise. The same may or may not be relevant at a future date. The information shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Prudential Asset Management Company Limited (the AMC). Prospective investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund.

Disclaimer: In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information developed inhouse. Some of the material(s) used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Further, the information contained herein should not be construed as forecast or promise. The recipient alone shall be fully responsible/are liable for any decision taken on this material.

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