Canara Bank share: Experts give 'buy' tag despite Rekha Jhunjhunwala, LIC trimming stake in this PSU bank share
Rekha Jhunjhunwala portfolio: Those retail investors who follow Rekha Jhunjhunwala's portfolio, there is a piece of stock market news. The ace Indian stock market investor has booked partial profit in one of its portfolio stocks Canara Bank. As per the shareholding pattern of Canara Bank for the January to March 2024 quarter, Rekha Jhunjhunwala has offloaded her stake in the PSU bank from 2.07 percent to 1.45 percent.
The insurance behemoth of India, Life Insurance Corporation (LIC) of India has also booked partial profit in this PSU banking stock. LIC has trimmed its stake from 6.30 percent to 6.21 percent in Canara Bank during Q4FY24. However, stock market experts are unmoved by this profit booking by Rekha Jhunjhunwala and LIC.
They said that healthy recoveries may continue to fuel the state-owned bank's asset quality in the medium to long term and advised investors to maintain the buy-on-dips strategy regarding Canara Bank shares. Speaking on the king of results that the PSU bank may deliver, Shreyansh Shah, Research Analyst at StoxBox said, "Canara Bank witnessed continued improvement in operating profit in the past on the back of higher net interest income and lower credit costs. We believe that higher provisioning for legacy stressed assets in the past would lead to benign credit costs going forward.
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