Want to short public sector banks? Look beyond Nifty Bank

Most traders track the banking sector by using the Nifty Bank as a proxy financial index. This makes sense in some ways. The derivatives of the Nifty Bank index are highly liquid and heavily traded. The index includes all the major listed banks. It is also highly sensitive to fluctuations in interest rates and treasury yields, and generally responds to news about the sector.
 
But, the Nifty Bank is not a good representative of the sector in many ways as well. Like all the major indices on the National Stock Exchange (NSE) and BSE, it is constructed on a