Yes Bank Ltd. and Union Bank of India will be included in the Nifty Bank index from Dec. 31, NSE Indices Ltd. announced on Monday. The number of constituents in the widely-tracked index will rise from 12 to 14.

Nifty Bank Rejig: Yes Bank, Union Bank Of India To Join Index From Dec 31 - Check Expected Inflows

NSE Indices Ltd. Announces Changes to Nifty Bank Index

Yes Bank Ltd. and Union Bank of India will be included in the Nifty Bank index from Dec. 31, NSE Indices Ltd. announced on Monday. This move will increase the number of constituents in the widely-tracked index from 12 to 14.

Index Methodology Revision

The Index Maintenance Sub-Committee (Equity) of the NSE subsidiary has decided to revise the index methodology of the Nifty Bank to make it compliant with the additional eligibility criteria for indices which are traded on Future & Options segment of stock exchanges as prescribed by SEBI, according to a circular.

New Methodology Details

The selection of top 14 bank stocks will be based on six-month average free-float market capitalisation within the eligible stocks that are available for trading in NSE's F&O segment.
The weightage of the top three stocks in Nifty Bank index will be capped at 19%, 14%, and 10%, respectively.
For stocks other than top three, individual weights will be lower than those of higher weighted index constituents.