Hello Guys,
Today I have come with study material for the students of Bachelor Degree in their colleges in final Semester. Everyone have to submit proposal and thesis as a practical. So, today I have posted an outline for a proposal. I hope you all will like. Something formatting are as they are not available blog menu. So, if you want the correct and full outline of a proposal feel free to mail in gmail ID.
A
CASE STUDY ON EFFECTS OF MERGER & ACQUISITION OF BANKS IN NEPAL (WITH
REFERENCE TO MACHHAPUCHHRE BANK LTD.)
A
proposal
Submitted
By
Sita Kumari Sah
Hari
Khetan Multiple Campus
T.U.
Reg. No: ***************
Campus
Roll No: ****
Submitted
To
The
Faculty of Management
Tribhuvan
University
Kathmandu
In the Partial Fulfillment of the Requirements
for the Degree of
BACHELOR OF BUSINESS STUDIES (B.B.S.)
Birgunj,
Parsa
November,
2018
TABLE OF CONTENTS
Topics Page No.
1 Background
of the Study 1
2 Profile
of Machhapuchhre Bank Ltd. 2
3 Statement
of the Problem 3
4 Objectives
of the Study 4
5 Research
Methodology 4
6 Significance
of the Study 5
7 Review
of the Study 6
8 Limitation
of the Study 6
9 Organization
of the Study 6
1. Background
of the Study
We all are familiar with banks. Banks are
the financial institutions established under the laws of the country for the
purpose of accepting deposits, collecting cheques, lending, borrowing, issuing,
exchanging, safeguarding and handling of money and also acting as financial intermediaries.
Banks play a crucial role in the growth and development of the economy of a
country as they supply bulk quantity of funds for the smooth sailing of
economic activities. So, a well-fortified banking system is the key driver of
the economy of the country and can lead the country to the peak of success. It
is therefore clear that banks should be few in number but more stable and
stronger rather than many unstable and weaker one.
But in context of Nepal the number of
banks and financial institutions (BFIs) is more than requirement and they are
characterized by low volume of turn over, high-interest rate on lending, wide
interest rate spread, inefficient management and inadequate resources to fund
big projects. Nepalese banking system has not only fallen short of attaining
meaningful financial inclusion but also displays regional, urban and rural
disparity. So, after getting guidance from World Bank and IMF, NRB has under
taken financial consolidation policy in order to overcome these problems as
well as to reposition BFIs to strengthen them. Merger & acquisition is one
of the best and efficient measures of consolidation in the financial system for
repositioning BFIs.
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After the introduction of merger by-law in
2068 B.S., many BFIs have undergone to merger. However, Laxmi Bank Ltd.,
Bangladesh Bank Ltd. and Narayani National Finance Ltd. are few institutions
which have undergone to merger process before the announcement of the merger
by-law. Like different BFIs, Machhapuchhre Bank Ltd. (MBL) has also undergone
to merger process. MBL has been merged with Standard Finance Ltd.
2. Profile
of MBL
MBL, which was registered in 1998, is an
“A” Class National level Commercial Bank now with a network of 86 Branch
Offices, 2 Extension Counter, 37 Branchless Banking Units and 103 ATMs spread
all across the country. It started its banking operations from Pokhara since
year 2000. It is the first bank to introduce centralized banking software,
GLOBUS BANKING SYSTEM developed by Temenos NV, Switzerland.
Machhapuchhre Bank Ltd. merged with
Standard Finance Ltd., which is a “C” Class Financial institution on April 30,
2012 and they jointly started their banking operations from July 9, 2012.The
vision, mission and values of MBL are expressed below:
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To
become the bank of the first choice of the people.
Mission
To be one of the most preferred banks in Nepal,
easily recognized as the bank which satisfies and cares for its customers
through quality service, innovative products, professionalism and wide branch
network, offering full array of financial services using modern technology and
with good corporate governance practices.
Values
With the objective of supporting the transition from rule
based to attitude-based behavior, the Bank is functioning with the following
five core values:
1. Integrity: Highest
level of integrity / absolute honesty in all the business conduct and dealings
with customers, staff, regulators, and other stakeholders.
2. Accessibility: Easy accessibility through traditional as well as modern means of communication.
3. Value Creation: For shareholders, customers, employees and the nation.
4. Quality Service: Through unmatched professionalism and excellent customer care.
5. Stewardship of Resources: With the feeling of ownership and accountability.
2. Accessibility: Easy accessibility through traditional as well as modern means of communication.
3. Value Creation: For shareholders, customers, employees and the nation.
4. Quality Service: Through unmatched professionalism and excellent customer care.
5. Stewardship of Resources: With the feeling of ownership and accountability.
3. Statement of the Problem
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3
3
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Hence, this study is conducted to know the effects of
merger and acquisition on employee satisfaction and financial performance of
merged banks. Till now more than 96 BFIs have undergone to merger process and
it is difficult to study each cases of merger. So, I have chosen the merger of
MBL with Standard Finance Limited (SFL) to study and understand these problems.
This study mainly focuses on the following problems:
·
Has the merger of MBL with SFL increased credit deposit
ratio, earning per share and price-earning ratio?
·
Does merger and acquisition affect on employee movement?
4.
Objectives of the
Study
Like every research study, this
research study has been also conducted with some objectives. The key objective
of this study is to evaluate the financial performance of MBL and job
satisfaction level of employees after merger. The main objectives of this
research study are pointed below:
·
To determine the
impact of merger & acquisition on employees.
·
To determine
pre-merger and post-merger EPS, MPS, P/E ratio, CD ratio, CAR, ROA, etc. of
MBL.
5.
Research Methodology
Research Methodology refers to the
procedures or techniques used to identify, select, process and analyze
information about a research topic for its overall validity and reliability. It
is most necessary to choose an appropriate research methodology to carry out
the research. This research has been conducted after the deep study of various
journal, text books and websites related to merger and acquisitions of banks in
Nepal. I have used the following research methodology to conduct this research.
5.1 Research Design
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5.2 Method of Data Collection
- Case Studies
- Documents and Records
5.3 Types of Data Used
-
Secondary Data
5.4 Tools and Techniques Used
- Financial Tools and Statistical Diagrams
6.
Significance of the
Study
Merger & acquisition has
become a key tool for many organizations in Nepal to restructure, expand and
strengthen their businesses. Most of the banks in Nepal are adopting merger
& acquisition in order to meet their capital requirement, decrease their
cost of operations, increase their profitability and meet the market
competitiveness. But employee dynamic and human resource issues are main
headache for the banks during merger & acquisition as they are the major determinants
of the success or failure of the banks’ merger.
This study gives insight into
the impact of merger & acquisition on employees and financial performance
of banks in Nepal with reference to Machhapuchhre Bank Limited. This study also
gives insight into the adoption of merger & acquisition process with well
thought and planned strategies lead to synergy and success of the merging banks.
7.
Review of the Study
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8. Limitations of
the Study
As every research studies and
theories have some limitations likewise, this research study has also some
limitations. Those limitations are expressed below:
·
This study is mostly
based on Secondary data collected from the websites of respective bank.
·
Due to non-availability
of time, only last five years data has been considered.
·
This study is
limited with the study of only one bank.
·
Due to
non-availability of adequate funds, very
deep research has not been done. As a result, some aspects may not be included.
9.
Organization of the
Study
Organization of the study is comprised of
three chapters. Those three chapters are expressed below:
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Chapter I – Introduction
This chapter consists of
background; profile of the organization, events, activities, etc.; objectives
of the study; rational; method of the study; review of literature; limitations
of the study.
Chapter II – Results and
Analysis
This chapter consists of presentation
of results and findings of project work.
Chapter III – Summary and
Conclusion
This chapter consists of a brief
summary of the report, and conclusion based on the findings of the report.
If you want the correct and full outline of a proposal, feel free to mail in gmail ID.
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Thank You!!!
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yes I want it, its great
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