Merger and Acquisition as an Indispensable tool for strengthening Nepalese Banking and Financial Institutions
Adhikari, Santosh (2014)
Lapin ammattikorkeakoulu
2014
All rights reserved
Julkaisun pysyvä osoite on
http://urn.fi/URN:NBN:fi:amk-201405158031
http://urn.fi/URN:NBN:fi:amk-201405158031
Tiivistelmä
The objective of this research is to study the impact of merger and acquisition in the Nepalese banking and financial institutions when Nepal Rastra Bank introduced a forceful merger bylaws policy in the year of 2011. It assesses and evaluates the impact of M&A on the employees, customers, shareholders of the merged entity and offers recommendations for further investigations to the concern authorities.
The theoretical part of this research is focused on brief introduction of the central bank of Nepal, financial system and classification in Nepal. It also covers the merger bylaws policy introduced by NRB. Some contemporary theories of merger and acquisition have been studied.
This research is carried out in three parts for six months. To assess the impact of M&A on the employees and customers, a web-based quantitative research is adopted by using webropol and Microsoft excel. In the Second part, this research compares and analyzes the pre-merger and post-merger performance of the merged entity by using different financial indicators. Finally, in the third stage, an in-depth interview has been conducted with the branch manager of the Machhapuchchhre Bank Limited to identify the impact of M&A on the financial market.
The result of the research provides a remarkable effect of M&A on the merged BFIs. In overall, 20 percent employees were lay-offs from different working department of the merged entity. Similarly, 80 percent of the merged entity clients and customer are not aware of recent structural changes in Nepalese financial sector. However, M&A has created a high degree of confidence and hope in doing better performance by the merged entity among employers, corporate clients and customer as well as shareholder’s. A positive signal has been visible in the whole financial market injected by M&A.
The author would like to recommend some suggestions for further research as there are many areas still need to be discovered in relation to the merger transition in Nepal and its impact on employees, customer, shareholder’s and financial market.
Key words: Nepal Rastra Bank, banking and financial Institutions, merger and acquisition, consolidation, takeover
The theoretical part of this research is focused on brief introduction of the central bank of Nepal, financial system and classification in Nepal. It also covers the merger bylaws policy introduced by NRB. Some contemporary theories of merger and acquisition have been studied.
This research is carried out in three parts for six months. To assess the impact of M&A on the employees and customers, a web-based quantitative research is adopted by using webropol and Microsoft excel. In the Second part, this research compares and analyzes the pre-merger and post-merger performance of the merged entity by using different financial indicators. Finally, in the third stage, an in-depth interview has been conducted with the branch manager of the Machhapuchchhre Bank Limited to identify the impact of M&A on the financial market.
The result of the research provides a remarkable effect of M&A on the merged BFIs. In overall, 20 percent employees were lay-offs from different working department of the merged entity. Similarly, 80 percent of the merged entity clients and customer are not aware of recent structural changes in Nepalese financial sector. However, M&A has created a high degree of confidence and hope in doing better performance by the merged entity among employers, corporate clients and customer as well as shareholder’s. A positive signal has been visible in the whole financial market injected by M&A.
The author would like to recommend some suggestions for further research as there are many areas still need to be discovered in relation to the merger transition in Nepal and its impact on employees, customer, shareholder’s and financial market.
Key words: Nepal Rastra Bank, banking and financial Institutions, merger and acquisition, consolidation, takeover