2. 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
3. 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
4. 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.
6. 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
7. 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 .
8. Problem with merger
• Clash of corporate culture
• Increase the business complexity
• Employee may resistance to change.
9. Impact of merger
Impact of
merger
Impact on
worker
Impact on
shareholder
Impact on top
level
management