Impact of Merger and Acquisition on Financialperformance of Nepalese Financial Institutions

Abstract

This study mainly aims to analyze the impact of merger and acquisitions on financialperformance of Nepalesebanks and financial institutions. The data is collected fromthe annual report in this study is mainly casual Comparative research design studyhas been carried out using financial ratio analysis for the fiscal year 2066/67-2072/73. Using financial ratio analysis on merger and acquisition on banks impact onfinancial performance of institutions. Also, there is improvement in the bankperformance after the merging. It recommends that merging and acquisition shouldnot be used to keep failing business alive but to increase competitiveness andfinancial standing. There are50 banks and financial institutions are merged. Thisresearch is based on Six Banks and financial institutions there are Global IME Banklimited, NIC Asia bank limited, Machhapuchre bank limited, Sangrilla Dev. Banklimited, NMB bank limited and Siddhartha bank limited. The study reveals the impact of merger and acquisition on financial performance ofNepalese financial institutions. The analysis and results show that financialinstitutions performed better in the post-merger and acquisitions era as compared tothe pre-merger and acquisition era. This is supported by the fact that merging andacquisition had a significant impact on financial performance.