Presentation on merger and acquition in nepal pravhu and kist
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Transcript of Presentation on merger and acquition in nepal pravhu and kist
Presentation on mergerof Prabhu Bank Ltd.
Presented by :
Kshitiz pokhrel
Introduction
• Prabhu bank is totally service oriented bank
• Located on Prabhu Building, Babarmahal Kathmandu, Nepal
• With a market capital of 4,140,000,000/-
• Prabhu bank formed after the merger between four financial institution.
• It has 1135 staffers and 631000 customers
Exclusive Summaries
• The bank paid up capital of Rs:3.2 billion. Prabhu bank has 112 branches and 108 ATM counters across the country.
• It is one of the biggest mergers in Nepali finance
• Established in 2006 and is in operation to provide banking service to the people
• mobilizing the idle fund to the productive sectors.
• This is a first financial institution authorized for Inward Remittance Business in Nepal and finance for those who go for foreign employment
Discription of business
• Prabhu shall provide Fast, Reliable and Secure Remittance as well as banking services to our Customers.
• It run with a slogan ‘Your trust is our strength’.
• Established in 2006 and is in operation to provide banking service to the people by mobilizing the idle fund to the productive sectors.
Reason of merger
Reasons of
merger
Improve service
Future goal
Mutual benefit
Maximising profit
Risk diversificati
on
Goodwill
Merger can take place in a following way:
• By purchasing of assets
• By purchasing the common shares
• By exchanging the shares for assets
• By exchanging the shares for shares
Company A
Company B
Company C
Benefit of merger
• Increase market share
• Economics of scale
• Profit for research and development
• Benefit on the account of tax shields like carried forward losses or unclaimed depreciation.
• Reduction of competition .
Problem with merger
• Clash of corporate culture
• Increase the business complexity
• Employee may resistance to change.
Impact of merger
Impact of merger
Impact on worker
Impact on shareholder
Impact on top level
management
SWOT analysis