Rekha Jhunjhunwala sells 1 crore Canara Bank shares in Q1. What's behind the move?

Rekha Jhunjhunwala sold over 1.07 crore shares of Canara Bank in the April-June quarter of the financial year 2027, according to the latest data on the PSU lender’s shareholding pattern, which shows the veteran investor's latest stake sale.

Rekha Jhunjhunwala held 12.92 crore shares, or 1.42% stake in Canara Bank at the end of Q1 FY27, as against 13.99 crore shares or 1.54% stake held at the end of Q4 FY26. This comes as the shares of the state-owned lender dropped over 18% in 2026 so far and over 4% in one month, after delivering 93% returns over three years and 316% in five years.

The exact price at which she sold the shares of the company and how much returns she made from the bet are yet to be determined. The shares of Canara Bank rose only 2% in the three months that ended on June 30, 2026.


Rakesh Jhunjhunwala's bullish stance on PSU banks

‘Big Bull’ Rakesh Jhunjhunwala first picked up a stake in the bank as part of a broader bullish view on public sector banks (PSBs). He was widely known for his optimistic stance on PSU banks. He believed these lenders were deeply undervalued and poised to benefit from a cyclical recovery in credit growth and improving asset quality.

In old interviews, Jhunjhunwala said he was "extremely bullish on banks and especially on the so-called inefficient banks," pointing to the strong deposit-gathering ability, improving credit cycles and cheap valuations as key reasons for his confidence in state-run lenders.

Also read: Private banks may lead PSU peers in Q1 PAT show amid macro pressures

After his death in 2022 at the age of 62, his wife Rekha Jhunjhunwala inherited his valuable stock portfolio. Rekha Jhunjhunwala publicly held 26 stocks with a net worth of over Rs 51,412 crore, Trendlyne reported citing the latest corporate shareholdings. Some of the notable stocks held by her include Indian Hotels Company, Tata Motors PV, Sun Pharma, Titan Company and more.

The ace investor, who manages the mega portfolio of her late husband Rakesh Jhunjhunwala, has been offloading some of her stake in Canara Bank recently. The shares of the company tumbled around 3% to trade at around Rs 126 apiece on NSE on Tuesday afternoon.

Canara Bank earnings snapshot

Canara Bank in May reported a consolidated net profit of Rs 4,506 crore for the January-March quarter of FY26, marking a 10% year-over-year (YoY) fall from Rs 5,002 crore reported in the year-ago period. The PSU lender's net interest income (NII) in Q4 FY26 was up 4% to Rs 9,808 crore versus Rs 9,442 crore posted by the company in the corresponding quarter of the previous financial year.

As of March 31, 2026, the bank had 10,097 branches, including 3,200 rural, 3,025 semi-urban, 1,987 urban and 1,885 metro branches, along with 11,306 ATMs and recyclers. The bank also has four overseas branches in London, New York, Dubai and GIFT City.

Also read: Canara Bank Q4 Results | PAT drops 10% YoY to Rs 4,506 crore; NII up 4%

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