The performance of some Indian banks will be tracked via a new index.

A newly-launched stock index will track the performance of a group of India's largest private sector banks.

India Index Services & Products (IISL), which provides indices for the country’s National Stock Exchange, has launched what is called the Nifty Private Bank Index, tracking the 10 largest private sector banks that are listed on the NSE.

“The index will complement the existing Nifty Bank and Nifty PSU Bank indices and provide the investors with gamut of banking sector indices catering to different investment needs,” Mukesh Agarwal, chief executive of IISL, said.

The index is calculated using a free float market capitalisation method and stock weights are capped at 25 per cent. The base date of this index is 1 April 2005 and the base value is 1000. The index will be maintained by IISL and calculated on an end-of-day basis.