IMPACT OF MERGER ON PROFITABILITY OF COMMERCIAL BANKS IN NEPAL

Abstract

Consolidation, acquisitions, and mergers have long been a feature of the corporate sector. Therefore, the goal of this study was to determine how mergers and acquisitions affected Nepal's commercial banks' profitability performance. The purpose of this study is to investigate the relationship between mergers and acquisitions and the commercial banks' financial viability. For this study, analytical and descriptive research designs are employed. A sample of three commercial banks is chosen at random. The study also attempted to evaluate the companies' ten-year data, which included five years prior to and five years following the merger. Regression, correlation, mean, and standard deviation are some of the tools used in data analysis. The information is taken from selected commercial banks' annual reports from different years. The results indicate that the capital has improved following a merger of two or more BFIs. On the other hand, no substantial impact on return on equity is shown by the variables, while only NPL has a significant impact on return on assets.