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

Abstract

Mergers, acquisitions and takeovers, consolidation have been a part of the business world for so many years ago. Hence, the purpose of this study was to know the impact that merger and acquisition has had on the financial performance of the commercial banks in Nepal. This study aims to examine the association between merger and acquisition and the financial performance of the commercial banks. A descriptive and analytical research design are used for this research. Three commercial banks are selected randomly as a sample. Also the study tried to assess the companies’ ten years data i.e. from 2012-2022. Various tools used for data analysis are mean, standard deviation, correlation etc. The data are collected from the various years’ annual report of selected commercial banks. The findings shows that following the merger and acquisition of two or more bank and FIs, capital & LLP have made at a low cost and low NPL and also reduced profitability CRR and EPS. Whereas, only return on operating expense has huge impact on return on assets but debt equity ratio and return on loan loss provision have had insignificant impact