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DECLARATION

“IMPACT

OF

MERGERS

AND

ACQUISITIONS

ON

FINANCIAL

PERFORMANCE” a report on Seminar Series which is submitted by me in
partial fulfillment of the requirement for the award of MBA degree of Purbanchal
University Comprise only my original work and due acknowledgement have been
made to materials used in the report.

Hari giri
August, 2015

I

. S..(APPROVAL SHEET) This report entitled “IMPACT OF MERGERS AND ACQUISITIONS ON FINANCIAL PERFORMANCE” submitted by Hari giri has been accepted as a partial fulfillment of the requirements for the degree of Masters of Business Administration (MBA) has been found satisfactory in scope and quality....K Singh Acknowledgement II .... Dipak Bahadur Bhandari Associate Prof... Dr. Report Evaluation Committee ……………………………… Dr.. Faculty of Management Pokhara University ……………………. Prof. Therefore....……………… Purna Bahadur Khand …………………………. Registrar. we accept this report as a part of the said Degree..

EXECUTIVE SUMMARY III . S. Deepak Bhandari. I am very great full thank to the head of campus Mr. Newroad Pokhara. I would also like to express my gratitude to my entire respected teacher. CEO. Hari Giri …………. for their excellent guidance. Pokhara for providing me an opportunity to carry out this report work. Purna Bahadur Khand. Novel Academy. Lastly my genuine sense of gratitude goes to my university that gave me a chance to brighten my academic qualification that provided me this opportunity to have a practical knowledge of relevant fields. Vice-Dean. who gave me suggestion and guidance to make my report as required. Novel Academy for their co-operation and motivation.This report “IMPACT OF MERGERS AND ACQUISITIONS ON FINANCIAL PERFORMANCE” has been prepared as a partial fulfillment of the seminar course requirement for the degree of Masters of Business Administration (MBA). Novel Academy. encouragement and valuable suggestions throughout the seminar. I would like to extend my sincere thanks and warm gratitude to my respectful seminar trainers Professor Dr. Pokhara University School of Business Lekthnath and Mr. Coordinator.K Singh Associate Professor Dr. Bisheshowor Acharya. First of all I would like to express my sincere gratitude to department of Novel Academy. Newroad pokhara and Dipendra pahari.

M&As provide management with the opportunity to renegotiate terms and conditions. which was brought about by the national deregulation of markets and the increase in new methods of dealing with customers.i IV . the Nepalese Banking Sector is facing a huge problem and is in critical juncture. Responding to the benefits presented by NRB. The paper argues that current legislation is often insufficient to provide employees’ information and consultation bodies enough power and resources to be able to effectively address crisis situations such as mergers and take-overs. in order to cope with this problem Nepal Rasta Bank (NRB) has directed the Banking Institutions to go in the process of mergers and acquisitions. such collective bargaining arrangements often have to be re-negotiated. NRB has provided several benefits to the merging institutions. This paper summarizes the key findings of these papers and highlights the fact & impact of M&As in the finance sector. the banks and the financial institutions of the country are opting in the process of merger. As mergers often lead to organizational changes involving the break-up of established bargaining units. which leads to a destabilization of the social climate of the company.…... Presently. This is further aggravated by the uncertainty relating to employee information and consultation arrangements in the new merged company.This chapter outlines the adoption and implementation of merger and acquisition in finance sector of Nepal. Evidence shows that workers are often informed very late or even after the event in the case of a merger or take-over. PAGE DECLARATION…………………………………………………………. The paper argues that mergers in the finance sectors are largely the result of destabilization in the competitive environment for financial services. A review of nic asia bank in this area is therefore urged and it is argued that much could be learnt from disseminating good practice from companies which have experience in dealing with such situations. So.

……………….…1-5 1..1 Definition of mergers and acquisitions……………………………………...3 1..….……..3.3 Objective of the Study……………………………………….5 1.3 1.2 Leverage Ratio 3.vii LIST OF ABERRATION…………………………………………….....….2 Impact of merger and acquisitions on banks performance in NEPAL………7 CHAPTER III: PRESENTATION AND ANALYSIS OF DATA…….7 Limitation of the study………………………………………………….……..1 Approach of the Study 1......………3 1.5 Scope of the Study……….8 Organization of the Project Report………………………………………..…….……………………………………….ii ACKNOWLEDGEMENT…………………………………………….6 Study Methodology………………………………………………………....…..1 1..vii CHAPTER I: INTRODUCTION …………………………...iv TABLE OF CONTENTS…………………………………………… …….…….3 Data Presentation and Analysis Technique 1..3..6.…….v/vi LIST OF FIGURES/DIAGRAMS……………………………………....2 Introduction of the organization…………………………………………..6.3..2 Work Schedule 1...4 Statements of the Problem……………………………………………….1 Background of the Study……………………….6 2.3 Equity Multiplier V ..5 Chapter: II Literature review 2.……8-13 3.…2 1.APPROVAL SHEET……………………………………………………..….2 Tools for Data Presentation and Analysis 3..6.…..…….3 Ratio analysis 3.1 Introduction 3....1 Liquidity Ratio 3.2 1..iii EXECUTIVE SUMMARY…………………………………………………...

3.10: Dividend per share CHAPTER IV: SUMMARY.3.5 Net interest income 3. Table Name Page no Table 1 Current ratio 9 Table 2 Debt Ratio 9 Table 3 Equity multiplier 10 Table 4 Net Interest income 11 VI .7: Return on Assets 3.3.8: Return on Equity (ROE) 3.3.1Summary 4.9: Earnings per Share (EPS) 3.3.3. CONCLUSION AND RECOMMENDATION 16-19 4.3.2Conclusion 4.3.3 Recommendation Bibliography (References) Appendices List of Figure and Diagram No.4 Profitability Ratio 3.6: Net Income 3.

MV= market Value 7. EBT= Earning Before Tax 10. NRB= Nepal Rastra Bank 9. BoAN= Bank of Asia Nepal 5. MBA = Masters of Business Administration 2. HRM= human resource management 8. NIC= Nepal Industry and Commerce bank 4. M&A= Merger And Acquisition 3. ROE= Return On Equity 6.Table 5 Net Income 11 Table 6 Return On Asset 12 Table 7 Return On equity 12 Table 8 Earnings Per share 13 Table 9 Dividend Per Share 13 LIST OF ABBREVIATIONS 1. EBIT= Earnings Before Interest and tax VII .