As per 17 Sep 2018 closing price, the combined Market Cap of BoB, Dena Bank & Vijaya Bank was Rs 47,154 Cr. After merger of these 3 banks was proposed BoB started crashing on 18th Sep. Dena gained well and closed at about 20% high. Vijaya Bank reaction was most strange as it first gained about 10%, and then ended about 10% down. After a month, as per 17 Oct 2018 closing price, the comibine mcap of these 3 banks is now reduced to Rs 35254.44 Cr. Though other stocks have also corrected in past one month, but 25% looks like a pretty good correction. Specially considering the fact that merger should help the 3 banks to improve overall efficiency, and hence to improver performance as a joint entity. There surely should be concerns due to bad books of Dena Bank, but GoI has already shown its intent by declaring that it will infuse extra cash in to Dena Bank before merger. So my question is, is it a good time to buy Bob on dips?
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