Merger and Aquisition of banking industry is necessary in context of Nepal there are lots of financial instituion but they are only foucssed in urban area not in rural area plus all banking products are only for wealthy people who can afford to provide security like land and building. In Nepal one need to have backup property like Land and Building in order to get loan. If you only have plan but no back up then you can hardly get loan. Subsidies loan like Deprive Sector Loan, Women Enterpreniorship Loan, Agriculture Loan are only for wealthy person. So, merger is necessary for Nepalese Banking Industries. However, merger and acquision may arrisee problem which may be as under
a) Informal Group
b) Biasness in Incentive
c) Biasness in Promotion
d) Pressure from superior( Big portion Share holders bank) to inferior ( Small portion shsare holder)
e) Lay off
f) Time to cope up with system
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