Rakesh Jhunjhunwala portfolio: Canara Bank, a PSU bank stock included in BigBull’s portfolio, has presented strong results in the third quarter. In the third quarter, the company’s profit grew by 115 per cent year-on-year to Rs 15.02 billion from Rs 6.96 billion. The reason for this strong growth in Canara Bank’s profit is the reduction in the provisioning of the bank in this quarter. In the third quarter, the provisioning of the bank has come down from Rs 42.10 billion to Rs 22.45 billion.
Market experts say that with the weakening of the COVID-19 crisis, banks are reducing their provisioning, which is seeing a sharp increase in their profits. He says that the sharp increase in the profits of Canara Bank should be seen from this perspective as well.
Market experts also say that with the reduction of the problems related to the corona epidemic, we can get to hear some beneficial announcements for the banks. The banking sector will be seen contributing to the economy growth in the coming quarters. Due to which we can see a sharp jump in the profits and earnings of the banks. Market experts say that Canara Bank stock should be bought from a long term perspective.
Ashish Kochalia bought stake in this multibagger stock in the third quarter, know what is the opinion of experts on the stock
Avinash Gorakshakar of Profitmart Securities It says that the company has seen good growth in interest income and profit in the third quarter. Given the improvement in its asset quality, it would be advisable to buy this stock from a long-term perspective.
Looking at the shareholding pattern in Canara Bank, Rakesh Jhunjhunwala’s stake was 2,90,97,400 shares or 1.60 per cent in the October-December quarter.
likewise Sumeet Bagdia of Choice Broking It says that the chart pattern of this stock looks good even for short traders. One can buy this stock at current level also with short term target of Rs 250-275. For this, put a stop loss of Rs 225.
The asset quality of the bank has also shown improvement in the third quarter. The Gross NPA of the Bank has come down from 8.42% to 7.80% on a quarter-on-quarter basis while the Net NPA has come down from 3.21% to 2.86%.
In rupee terms, the gross NPA of Canara Bank has come down from Rs 57,853 crore to Rs 56,893 crore on a quarter-on-quarter basis, while the net NPA has come down from Rs 20,862 crore to Rs 19,819 crore. The bank’s provisioning has come down from Rs 3,360 crore to Rs 2,245 crore on a quarter-on-quarter basis. It is worth mentioning that Canara Bank had made a provisioning of Rs 4210 crore in the third quarter of the last financial year.
In the third quarter, the loan growth rate of Canara Bank has seen an increase of 9.1 percent year-on-year. The company’s new NPAs in the third quarter stood at Rs 3,292 crore. Let us inform that in the second quarter of this financial year, the new NPA of the bank stood at Rs 6,896 crore.
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