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Rakesh Jhunjhunwala portfolio: One of the Big Bull-owned banks, Canara Bank has reported strong Q3 numbers. The PSU bank has reported 115 per cent year-on-year (YoY) jump in its net profit from ₹6.96 billion to ₹15.02 billion. This sharp rise in net profit of Canara Bank could become possible as the banks provisioning in this period has come down from ₹42.10 billion to ₹22.45 billion in Q3FY22.
According to stock market experts, due to receding Covid-19 crisis, banks are lowering its provisioning, which is leading to sharp rise in its net profit. They said that rise in net profit of Canara Bank should be seen from this angle too. They went on to add that there can be some announcement for the benefit of banks as well as in the wake of receding Covid-19 pandemic, banking sector is expected to fuel the economic growth and hence one can expect sharp jump in net profit and revenue of the Indian banks in upcoming quarters too. They advised investors to buy this Rakesh Jhunjhunwala portfolio stock for long term.
Advising positional investors to buy Canara Bank shares for long term; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Canara Bank has managed to register sharp rise in its net profit on year-on-year basis as in the wake of receding Covid-19 crisis, its provisioning has come down from around ₹42 billion to ₹22 billion levels. This has led to decline in net NPA of the bank too. So, one can buy this Rakesh Jhunjhunwala portfolio stock for long term as some big announcement in favour of the Indian banking sector is also expected in upcoming Budget 2022."
Avinash Gorakshkar went on to add that due to receding Covid-19 crisis, economy is expected to open up. In such a situation, banking sector is expected to fuel other segment by lending liquidity. So, Canara Bank is expected to continue report strong quarterly numbers in upcoming quarters too.
As per the Canara Bank Q3FY22 report, its year-on-year provisioning has come down from ₹42.10 billion to ₹22.45 billion. In Q3FY22 results, Canara Bank has reported rise in its revenue from interest income as well. It has reported that it has earned ₹177.01 billion from interest in Q3 FY2021-22 against its interest income of ₹172.12 billion a year ago.
The PSU bank has reported decline in its gross NPA as well. In Q3 FY2021-22, Canara Bank's gross NPA stands at 7.80 per cent against 8.42 per cent in previous quarter.
Rakesh Jhunjhunwala shareholding in Canara Bank
As per shareholding pattern of Canara Bbank for October to December 2021 quarter, Rakesh Jhunjhunwala holds 2,90,97,400 Canara Bank shares, which is 1.60 per cent of the total issued paid-up capital of the PSU bank.
For those who want to buy Canara Bank shares for short term; Sumeet Bagadia, Executive Director at Choice Broking said, “Canara Bank stock is looking positive on chart pattern. One can buy this Rakesh Jhunjhunwala portfolio stock at current levels for short term target of ₹250 to ₹275 maintaining stop loss at ₹225 apiece levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
