CNX BANK is an index comprised of the most liquid and large capitalization banking stocks traded on the NSE. CNX BANK provides investors and market intermediaries with an appropriate benchmark that captures the performance of the Bank segment of the market. Companies selected in the index are essentially ranking high in terms of market value represented by their market capitalization and liquidity.

The index is managed by India Index Services and Products Limited (IISL), a joint venture between NSE and CRISIL.

Selection Criteria

Selection of the index set is based on the following criteria:
1. Company's market capitalization 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 eligibility criteria for the index for a 3 month period instead of a 6 month period.

a. Market Capitalisation

The influence of each company on the index is directly proportional to its market value. Therefore, a company’s rank based on the average market capitalisation over a 6 month period is an important consideration for its selection in the CNX BANK Index.

b. Trading Interest

The companies considered for inclusion must rank among the highest in the Banking sector in terms of annual trading turnover and must have demonstrated a high level of trading frequency in the previous 6 month period.