IMPACT OF MERGER AND ACQUISITION ON FINANCIAL PERFORMANCE OF NEPALESE COMMERCIAL BANKS

Abstract

Merger and acquisition commercial banks improve after the merger with camel criteria. The research design of the study is descriptive and casual. The research has touch in mergers and acquisitions which sustain banks to ensure long term existence of considerable profitability. The study evaluates the effect of merger and acquisition on banks through profitability ratio. The merger law policy and monetary policy issued by Nepal Rastra Bank have been experienced most effective weapon for merger and acquisition in Nepalese banking sector. Three banks are taken for study, first the merger of Global IME bank Ltd; second, Prabhu Bank Ltd; and third, NIC Asia Bank Ltd. The post-merger performance compared to pre-merger performance is positive due to the strengthens of financial performance.