Rakesh Jhunjhunwala stock: Canara Bank surges 6% amid strong Q3 earnings, improved asset quality

Billionaire investor Rakesh Jhunjhunwala-backed stock of public sector bank – Canara Bank jumped over 6 per cent to touch day’s high level of Rs 235 per share on the BSE intraday on Thursday. The surge in the counter came mainly amid robust third-quarter results for the current fiscal. 

Rakes Jhunjhunwala, who is also called the Big Bull of India stock market, has stayed put during the December quarter holding about 1.6 per cent stakes in the company, which comes to 29,097,400 equity shares. As per the latest shareholding pattern available on the BSE. 

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The ace investor had made a fresh entry in the stock during the September-end quarter of this fiscal.  

As per the stock analysis website trendlyne.com, the celebrity investor along with his wife Rekha Jhunjhunwala and Associates publicly holds 37 stocks with a net worth of over Rs 33,692.1 crore. 

Canara Bank reported a higher-than-expected net profit for the quarter ended December, up over 12 per cent to 1502.1 crore in Q3FY22 as compared to Rs 1340.2 crore in a year-ago quarter, while its net interest income came at Rs 6,945 crore, up 8.3% year-on-year. 

The PSU bank’s loan growth came at 9.1 per cent year-on-year. The bank in its filing said that it has provided for entire additional liability of Rs 1,355 crore with respect to family pension payable 

Besides, the bank’s overall asset quality improves on a sequential basis, as provisions fall to Rs 2,245 crore versus Rs 3,360 crore quarter-on-quarter and Q3 slippages came at Rs 3,291 crore as against Rs 6,896 crore QoQ. 

The scrip in the last 6 months has gained around 57 per cent on the BSE as compared to over 8 per cent rise in the BSE Sensex. 

At around 01:26 pm, the stock is trading almost 6 per cent higher to Rs 234.45 per share on the BSE as against 1.63 per cent fall in the S&P BSE Sensex at the same time.