Data from NSE shows that Rekha Jhunjhunwala, wife of the late market legend Rakesh Jhunjhunwala, now owns 14.23 crore shares of Canara Bank. In the June quarter, she held 13.24 crore shares, as per the bank’s shareholding pattern available on the exchange.
The timing of this move appears particularly opportune. Market sentiment around public sector banks has been buoyed by expectations of a potential increase in the foreign institutional investment (FII) cap — from the current 20% to 49%. According to Nuvama Institutional Equities, such a move could unlock up to $4 billion in passive inflows across leading PSU lenders. The brokerage estimates that Canara Bank alone could attract around $305 million in flows if the proposal goes through, offering a meaningful boost to valuations.
Adding to the optimism, InCred Equities, in a report published earlier today, said that Canara Bank is well-placed to cushion the impact of margin compression by keeping credit costs under control over the next few years. The brokerage expects the bank to benefit from the stake sale and potential listing of its life insurance and asset management subsidiaries in Q3FY26, which could unlock around Rs 20 billion in value — equivalent to about 10 basis points of average assets.
While InCred projects a slight moderation in profitability metrics, it maintains that the risk-reward remains favourable. The brokerage values Canara Bank at 0.8x Sep-2027F book, a level that still offers reasonable upside potential. It has raised its target price to Rs 147 (from Rs 127 earlier) after rolling forward its valuation by six months and revising its earnings estimates, while maintaining an Add rating on the stock.
The bullish commentary from InCred follows Canara Bank’s strong second-quarter earnings on October 30. The lender reported an 18.7% year-on-year surge in standalone net profit to Rs 4,773.96 crore, compared with Rs 4,014.53 crore in the same period last year. Although interest income declined 1.9% YoY to Rs 9,141 crore from Rs 9,315 crore in Q2FY25, the bank’s operating profit jumped 12.2% YoY to Rs 8,588 crore, reflecting robust core performance despite pressure on margins.Interestingly, Rekha Jhunjhunwala’s buying spree hasn’t been limited to Canara Bank. The market veteran has also increased her stake in Federal Bank during the same quarter. As per BSE data, she acquired an additional 2.3 crore shares, or about 0.9%, taking her total holding to 2.4% in the private lender. She now owns 5.9 crore shares, up from 3.6 crore shares in the June quarter, according to the bank’s latest shareholding pattern.Her purchase came just before private equity giant Blackstone announced a $705 million investment for a 9.9% stake in Federal Bank — a deal that makes the U.S. PE firm the bank’s largest shareholder. The move has been viewed as a strong endorsement of India’s financial sector by global investors and could mark the beginning of a new wave of foreign capital inflows into Indian banks.
Beyond banking, Rekha Jhunjhunwala has also raised her stake in Titan Company, the flagship jewellery-to-wearables player from the Tata Group. According to the latest BSE filings, she purchased an additional 15 lakh shares, or about 0.2%, during Q2FY26. Her total holding in Titan now stands at 5.3%.
The Jhunjhunwala family’s association with Titan dates back to 2002–2003, when the stock traded in double digits and the company was struggling to find its footing. What began as an investment worth only a few crores has since become the cornerstone of the family’s multibillion-dollar portfolio, epitomising Rakesh Jhunjhunwala’s legendary conviction in India’s consumption story.
Shares of Canara Bank have surged 40% over the past six months and an astonishing 700% in the last five years.
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