Why Did Rekha Jhunjhunwala Reduce Her Stake in

CANBK

?

Rekha Jhunjhunwala reduced her holding in

by selling nearly 1 crore shares during the June quarter. Following the transaction, her stake in the bank declined from 2.09% to around 1.96%, according to the latest shareholding data. The move comes after a strong rally in PSU banking stocks over the past year, leading to speculation that the sale could be part of routine portfolio rebalancing or profit booking rather than a change in the long-term investment outlook. Despite the reduction, Rekha Jhunjhunwala continues to remain a significant shareholder in the bank. Changes in marquee investors' holdings often attract market attention, but a single quarter's buying or selling activity should not be viewed in isolation. Investors should instead focus on Canara Bank's core fundamentals, including credit growth, asset quality, deposit mobilisation, profitability, and capital adequacy, to assess the bank's long-term prospects.