2021Impact of Merger and Acquisition on Orginational Performance of Nepalese Commercial Banks (With Refrence to Global IME Bank & Machapuchhre Bank)

Abstract

Mergers and Acquisitions is an important financial tool that enables companies to grow faster and provide returns to owners and investors. A merger is the complete absorption of one firm by another, wherein the acquiring firm retains the identity and the acquired firm ceases to exist as a separate entity. A merger is a corporate strategy usually done between two or more than two companies where acquiring firm and acquired firm stand on a merger agreement. The terms merger and consolidation have been used synonymously. However, the two have different legal identities after the merger deal. Researcher has been employed the descriptive and causal comparative research design. Descriptive research design used to identify the level of employee satisfaction position, merger and acquisitions, merger by laws, bank and financial indices. Descriptive research design attempts to obtain a complete and accurate description of a situation. The perception of the direction, magnitude and forms of observed relationship between merger and the bank performance as well as the factor affection them. Moreover, this study has also employed casual comparative research design to determine the effect of those variables in the bank performance and employee's perception towards the same. This study examines the impact of Merger and Acquisition on profitability of banks and assess the satisfaction position of employee after merger. There is satisfactory in credit to deposit ratio after merger of both banks. There is efficiently managed their assets to generate earnings when merger and acquisition of both banks. The return of asset (ROA, ROI) both banks are enabling to increase in comparison to premerger. There is fluctuation trend of net profit margin of Global IME bank but as a average there was increasing value in post-merger period and there is rapidly increase of net profit margin of Machhapuchchhre bank after merger. As merged entity reported a better financial performance in post-merger period then premerger period.

In the banks there are very few employees having qualification of intermediate level, majority of the employee they are happier with their work- they happier xii

because they have specified work place, defined work time, no pressure of manipulation, good understanding co-worker than pre- merger period. They feel competitive employee in the market and recognized as a professional on their work place. But some of the employee has inconvenience about the specified training for example: loan department employee.