Rakesh Jhunjunwala's wife buys an additional stake in this bank. Should you invest?

Rekha Jhunjunwala increases stake in Karur Vysya Bank.

Rekha Jhunjunwala increases stake in Karur Vysya Bank

2022 gave the Indian markets many ups and downs, from the bloodbath to the indices hitting highs. Nifty Bank hit its lifetime highs many times, and investors invested in banking stocks made a fortune. We move into 2023, and banking stocks are continuing with their momentum. 

A bank in focus lately has been the Karur Vysya Bank. The late ace investor Rakesh Jhunjunwala's wife, Rekha Jhunjunwala, has brought an additional stake in this relatively small bank.

Read: This stock owned by Rakesh Jhunwala has given 15% CAGR in the last 20 years. 

About The Indian Warren Buffet

Rakesh Jhunjunwala was a billionaire investor and stock trader known as the Warren Buffet of India and was India's 36th richest man when he passed away in 2022. His net worth stood at Rs. 460 billion at the time of his death. He was on the board of many companies, with the designation "Director." Geojit Financial Services, Provogue India, Concord Biotech, and Viceroy Hotels were some of these companies. 

Rekha Jhunjunwala brought an additional stake in the Karur Vysya Bank in Oct 2022-Dec 2022 quarter through Rakesh Jhunjunwala and associates. Her stake was 4.37% in September 2022; by December, it was 4.74%. While we don't know the precise reasons, we think the following might be some of why she increased her stake in the bank: 

  • The bank saw a sharp rise in net profit in September 2022 and continued its excellent performance in the next quarter. Its profit has been increasing since the last eight quarters. Its revenue has also grown in the last six quarters. 
  • The bank has improved its asset quality, with the NPA ratio decreasing to 2.7% this quarter from 6.9% at the same time last year. It is aggressively working on cleaning up the balance sheet and has been writing off loans. 

Read: Top investing advice from top investor Rakesh Jhunjunwala.

Recent Performance Of Karur Vysya Bank

The bank's recent performance has decreased its share price by 5%. It has rallied 134% in the last three years. The bank reached its 52-week high on December 15, 2022, touching Rs. 116. It hit its 52-week low on May 16, 2022, falling to Rs. 41.8. 

The bank is headquartered in Tamil Nadu's Karur and was founded by Krishna Chettiar and M.A. Venkatarama Chettiar in 1916. It is a Scheduled Commercial Bank. Its primary operations include retail banking, wholesale/corporate banking, and treasury segments. 

Karur Vysya Bank net profit increases by 56% in the last quarter.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas


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