The fourth quarter of the financial year FY22 has taken a center stage with major companies announcing their financial performance for the respective period. Whereas Q4 of FY22 was bitter and filled with shocks of heavy volatility due to geopolitical tensions, which pushed up commodity and oil prices. However, in the same quarter, Dalal Street’s big bull Rakesh Jhunjhunwala has also been busy grabbing opportunities in the volatile equity market. The investor has increased his stake in a nationalized bank based in Bangalore.
it will be canara Bank Which is the third largest nationalized bank in India owned by the Government of India.
Canara Bank is one of the recent additions to Jhunjhunwala’s already booming portfolio. The investor found love for the bank in August last year and since then has only increased his stake in the lender, showcasing its growth potential going forward.
As of March 2022, Jhunjhunwala has increased his stake in Canara Bank to 35,597,400 equity shares or 1.96%. Jhunjhunwala’s stake in Canara was 29,097,400 equity shares or 1.6% in the previous quarter (October to December 2021).
Jhunjhunwala bought the Canara stake in August 2021 with 28,850,000 equity shares or 1.59%. He increased his stake to 29,097,400 equity shares or 1.6% in the September 2021 quarter, but kept it unchanged till the third quarter of FY22.
With this, Jhunjhunwala’s shareholding in Canara Bank has increased by 0.36% on a quarter-on-quarter basis.
Canara Bank shares closed on Friday at the level 248.30 each on the BSE, up 0.63%. Shares close at day’s high 249.80 per. At the current stock level, the market valuation of the bank exceeds 45,000 crores.
Shares of Canara Bank have gained a lot in one year. Taking into account Friday’s closing price on BSE, Canara Bank shares have gained 69.70 per cent. 147.2 each on April 8 last year.
Shares touch new 52-week high 272.80 each on BSE. Keeping in mind the new record highs, Canara Bank shares have gained over 85% in a year.
The bank will be in focus due to its fourth quarter earnings, which will be announced sometime between April-May this year.
In the December 2021 quarter, Canara Bank reported a strong performance with profitability and interest income registering strong growth on account of decline in provisions.
In Q3FY22, Canara Bank’s standalone net profit more than doubled from 1502.12 crore 696.06 crore in the same quarter last year. Net interest income (NII) jumped Q3FY22 vs . 6,944.98 crore in 6,086.48 crore in Q3FY21. Meanwhile, the bank’s provisions nearly halved 2244.84 crore against 4210.28 crore in Q3 last year. Though Gross Non-Performing Assets (GNPA) increased to 7.8% in Q3FY22 from 7.46% in Q3FY21, but on a quarter-on-quarter basis, the asset quality improved as GNPA stood at 8.42% in Q2FY22.
Overall, the outlook for the banking sector is healthy in Q4 as well.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The focus has shifted to the fourth quarter earnings season, which will begin next week, which will be ushered in by the IT and banking sector. The rapid jump in credit has led to the banking sector’s slowdown. The outlook is strong. Balance sheet growth and recovery, while the preview for IT is mixed as Q4 is seasonally weak.”
download
The app will get 14 days of unlimited access to Mint Premium absolutely free!