Long‑time market follower Rekha Jhunjhunwala has trimmed her Canara Bank stake to less than 1%, signaling the end of a highly profitable chapter.
Background: Jhunjhunwala’s Bet on PSU Banks
In August 2021, the late Rakesh Jhunjhunwala and later his wife Rekha began buying Canara Bank shares, believing public‑sector banks were undervalued and set to benefit from a credit‑growth cycle and better asset quality.
Recent Exit from Canara Bank
Data for the December quarter shows Rekha’s holding fell below the 1% threshold for the first time. Earlier, at the end of September 2025, she still owned about 1.57% of the bank, having nudged the stake up by roughly 0.1%.
Canara Bank’s Recent Performance
- Shares jumped almost 60% over the past year, outpacing many peer banks.
- For FY26 Q2, the bank posted a strong net profit that beat analyst forecasts, helped by higher treasury income and recoveries from written‑off loans.
- Loan and deposit growth remained steady, while asset‑quality metrics continued to improve.
What This Means for Investors
The sale highlights that even seasoned investors may choose to lock in gains after a strong run. With the Jhunjhunwalas stepping back, the stock will now move without the backing of one of its most vocal supporters. Retail investors should watch the bank’s earnings, credit‑growth outlook, and any changes in valuation before deciding whether to hold or add to their positions.
Disclaimer: This is not a recommendation or prediction. Please do your own research and consider your risk tolerance before making any investment decisions.