Renowned investor Rekha Jhunjhunwala has significantly increased her holdings in three major Indian companies during the second quarter, reflecting growing investor confidence in the banking and retail sectors.

Increased Stakes

Rekha Jhunjhunwala made the following notable purchases:

Canara Bank's Strong Performance

The increased stake in Canara Bank comes on the heels of the bank's robust Q2 results:

• Standalone net profit grew by 18.7% year-on-year to Rs 4,773.96 crore
• Operating profit increased by 12.2% to Rs 8,588.00 crore

Market Sentiment and Analyst View

The purchases align with positive market sentiment for PSU banks, driven by potential increases in FII investment caps from 20% to 49%. This change could unlock approximately $4.00 billion in passive inflows for the sector.

InCred Equities has raised Canara Bank's target price to Rs 147.00 from Rs 127.00, maintaining an 'Add' rating on the stock.

Stock Performance

Canara Bank's shares have shown impressive growth:

• 40% gain over the past six months
• 700% increase over five years

Key Financial Metrics

According to the latest financial results released by Canara Bank for Q2:

Asset Quality Improvement

The bank has shown significant improvement in its asset quality:

• Gross NPA ratio: 2.35% (down by 138 basis points)
• Net NPA ratio: 0.54% (down by 45 basis points)
• Provision Coverage Ratio (PCR): 93.50% (up by 270 basis points)

Rekha Jhunjhunwala's increased investments in these companies, particularly in the banking sector, may signal her confidence in the ongoing reforms and growth potential of Indian financial institutions. As the market continues to evolve, investors will be watching closely to see if these strategic moves pay off in the long term.

Canara Bank , one of India's leading public sector banks, has reported a robust financial performance for the second quarter of fiscal year 2025-26, with significant improvements in profitability and asset quality.

Key Financial Highlights

• Net Profit: The bank's net profit rose by 18.93% year-on-year to ₹4,774.00 crore for Q2 FY2025-26, compared to ₹4,014.00 crore in the same quarter last year.
• Operating Profit: Operating profit increased by 12.20% to ₹8,588.00 crore, up from ₹7,654.00 crore in Q2 FY2024-25.
• Total Income: The bank's total income grew by 11.17% to ₹38,598.00 crore, compared to ₹34,721.00 crore in the corresponding quarter of the previous year.

Asset Quality Improvement

Canara Bank has shown significant improvement in its asset quality metrics:

• Gross Non-Performing Assets (GNPA) ratio decreased to 2.35% as of September 30, 2025, down from 3.73% a year ago.
• Net Non-Performing Assets (NNPA) ratio improved to 0.54%, compared to 0.99% in the same period last year.
• Provision Coverage Ratio (PCR) strengthened to 93.59%, an increase of 270 basis points year-on-year.

Business Growth

The bank has demonstrated strong growth in its business segments:

• Global Business grew by 13.55% year-on-year to ₹26,78,963.00 crore.
• Global Deposits increased by 13.40% to ₹15,27,922.00 crore.
• Global Advances rose by 13.74% to ₹11,51,041.00 crore.

Retail and MSME Focus

Canara Bank has shown a strong focus on retail and MSME sectors:

• Retail Credit grew by 29.11% year-on-year to ₹2,51,190.00 crore.
• Housing Loans increased by 15.25% to ₹1,14,615.00 crore.
• MSME Credit stood at ₹1,53,777.00 crore, growing by 12.70% year-on-year.

Capital Adequacy and Profitability

• The bank's Capital Adequacy Ratio under Basel III stood at 16.20% as of September 30, 2025, with CET1 ratio at 12.21%.
• Return on Assets (RoA) improved to 1.12%, up by 7 basis points year-on-year.
• Earnings per Share (EPS) increased by 20.68% to ₹21.01.

Digital and Network Expansion

Canara Bank continues to expand its digital footprint and physical presence:

• The bank has 9,948 branches, including 3,165 in rural areas and 1,872 in metro locations.
• It operates 7,405 ATMs and 4 overseas branches.

K. Satyanarayana Raju, Managing Director & Chief Executive Officer of Canara Bank, stated, "Our Q2 results reflect the bank's strong fundamentals and strategic focus on quality growth. The significant improvement in asset quality and profitability metrics demonstrates our commitment to creating sustainable value for all stakeholders."

The bank's performance indicates a positive trajectory in its core operations, asset quality management, and overall business growth, positioning it well for future challenges and opportunities in the banking sector.