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