2021Impact of Merger and Acquisition on Orginational Performance of Nepalese Commercial Banks (With Refrence to Global IME Bank & Machapuchhre Bank)
Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Management
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
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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.
Description
Keywords
Financial tool, Nepalese commercial Banks