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Business News/ Markets / Stock Markets/  Canara Bank share: Experts give 'buy' tag despite Rekha Jhunjhunwala, LIC trimming stake in this PSU bank share
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Canara Bank share: Experts give 'buy' tag despite Rekha Jhunjhunwala, LIC trimming stake in this PSU bank share

Rekha Jhunjhunwala cut down her stake in Canara Bank offloading 0.62% shares of this PSU bank

LIC's stake in Canara Bank came down from 6.305 to 6.21% during the recently ended March 2024 quarter. (Photo: Mint)Premium
LIC's stake in Canara Bank came down from 6.305 to 6.21% during the recently ended March 2024 quarter. (Photo: Mint)

Rekha Jhunjhunwala portfolio: Those retail investors who follow Rekha Jhunjhunwala's portfolio, there is a piece of stock market news. The ace Indian stock market investor has booked partial profit in one of its portfolio stocks Canara Bank. As per the shareholding pattern of Canara Bank for the January to March 2024 quarter, Rekha Jhunjhunwala has offloaded her stake in the PSU bank from 2.07 percent to 1.45 percent. The insurance behemoth of India, Life Insurance Corporation (LIC) of India has also booked partial profit in this PSU banking stock. LIC has trimmed its stake from 6.30 percent to 6.21 percent in Canara Bank during Q4FY24. 

However, stock market experts are unmoved by this profit booking by Rekha Jhunjhunwala and LIC. They said that healthy recoveries may continue to fuel the state-owned bank's asset quality in the medium to long term and advised investors to maintain the buy-on-dips strategy regarding Canara Bank shares.

Canara Bank Q4 results 2024 preview

Speaking on the king of results that the PSU bank may deliver, Shreyansh Shah, Research Analyst at StoxBox said, "Canara Bank witnessed continued improvement in operating profit in the past on the back of higher net interest income and lower credit costs. We believe that higher provisioning for legacy stressed assets in the past would lead to benign credit costs going forward. We would continue to closely monitor the deposit franchise of the bank as its CASA still lags the average PSB ratio and should ideally improve in the future owing to its extensive branch network of over 23,000 banking outlets."

"On account of healthy recoveries, we expect the bank to have a healthy asset quality going forward. With the management looking confident of maintaining NIMs at around 3% and credit growth of 12% in the future, we remain positive on the company from a medium to long-term perspective," the StoxBox expert added.

Canara Bank share price target

Expecting further upside in Canara Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Canara Bank shares have made a strong base at 585 per share mark. I am expecting a bounce back in Canara Bank share price from 605 to 610 apiece range. One can buy Canara Bank shares in this range for the short-term target of 650 per share. However, one must maintain stop loss at 585 level."

On the suggestion to the Canara Bank shareholders, the Choice Broking expert said that existing shareholders can hold the stock or accumulate more in 605 to 610 per share range maintaining a stop loss at 585 apiece mark.

Rekha Jhunjhunwala's shareholding in Canara Bank

As per the shareholding pattern of Canara Bank for Q4FY24, Rekha Jhunjhunwala holds 2,63,17,400 Canara Bank shares, which is 1.45 percent of the total paid-up capital of the PSU bank. However, in the October to December 2023 quarter, Rekha Jhunjhunwala owned 3,75,97,600 Canara Bank shares or a 2.07 percent stake in the state-owned bank. This means the ace Indian investor booked partial profit in this PSU stock by offloading 1,12,80,200 Canara Bank shares or 0.62 percent stake in the PSU bank.

Likewise, LIC owns 11,27,19,914 Canara Bank shares or 6.21 percent stake in shareholding pattern of Canara Bank for the Q4FY24 period, which stood at 11,43,67,914 shares or 6.30 percent of the total paid-up capital of Canara Bank. So, LIC trimmed its stake in Canara Bank during Q4FY24 by offloading 16.48 lakh Canara Bank shares or 0.09 percent stake in this PSU bank.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 12 Apr 2024, 01:09 PM IST
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