After gaining nearly 10 per cent, the newly invested Rakesh Jhunjhunwala stock — Canara Bank hit a 21-month high of Rs 214.50 per share on the BSE intraday on Friday on the back of heavy volumes. The counter of the government-owned bank has been trading at its highest level since January 2020.

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Ace Investor Rakesh Jhunjhunwal has made a fresh entry into PSU bank, by picking up 29.10 million shares or a 1.6 per cent stake in Canara Bank as on September 30, 2021, according to the shareholding pattern data filed by the Bank.

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In Q2FY22, Canara Bank reported a 200 per cent jump in the net profit at Rs 1,333 crore amid robust growth in non-interest income including revenue from trading and recoveries. The state-owned bank had posted a net profit of Rs 444 crore in the same quarter a year ago.

Similarly, its non-interest income grew by 37.54 per cent year-on-year (YoY) basis to Rs 4,268 crore in the July-September quarter of FY22 from Rs 3,103 crore a year ago. 

While, Canara Bank’s asset quality profile was broadly stable, as gross non-performing assets (NPAs) rose to 8.42 per cent this September from 8.23 per cent a year ago and net NPAs reduced to 3.21 per cent in September 2021 from 3.42 per cent a year ago. 

The state-owned bank’s provision coverage ratio improved to 82.44 per cent at end of Q2FY22 from 81.48 per cent at end of Q2FY21.

Canara Bank’s management in results commentary had said that it is working to reduce GNPAs to 7.9 per cent and net NPAs to 2.8 per cent by March 2022. It has also guided for improvement in PCR to 83.95 per cent by end of FY22.

The stock in the last one month has gained around 30 per cent from Rs 168 per share to today’s high of Rs 218 per share on the BSE 0.89 per cent gain in the benchmark index. 

The scrip at around 02:03 pm has been trading 9.42 per cent higher to Rs 213.7 per share on the BSE, as compared to 0.94 decline in the S&P BSE Sensex.