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Deb, Joyeeta
- Operational Sustainability and its Determinants:A Panel Data Analysis of Indian MFIs
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Authors
Affiliations
1 Department of Commerce , Assam University, Silchar, IN
1 Department of Commerce , Assam University, Silchar, IN
Source
The Microfinance Review, Vol 9, No 1 (2017), Pagination: 40-52Abstract
Of various financial inclusion measures adopted so far, microfinance is considered to be one of the most powerful tools. Thus, it is equally important to ensure sustainability of such institutions. For many years, the term sustainability was viewed to be a crucial issue for only profit-making entities. As for Microfinance Institutions (MFIs), sustainability was deemed ensured through concessional lending and subsidies from government and donors. The present study attempts to assess the operational sustainability of 54 MFIs from 2009 to 2014 based on two broad parameters, namely, operational self-sufficiency and outreach. Further, the study also attempts to identify the determinants of operational sustainability. A panel data regression model was employed on 30 MFIs for six years from 2009 to 2014 to identify the influence of selected variables on operational self-sufficiency. Return on assets, return on equity, operating expenses to gross loan portfolio and growth in gross domestic product were found positively and significantly influencing operational self-sufficiency, whereas debt-to-equity is found negatively and significantly influencing self-sufficiency.Keywords
MFIs, Operational Self-Sufficiency, Outreach, Panel Data Regression, Sustainability.
References
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- A Study of Efficiency of Microfinance Institutions in India: A DEA Approach
Abstract Views :466 |
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Authors
Santa Kar
1,
Joyeeta Deb
1
Affiliations
1 Department of Commerce, Assam University, Silchar, IN
1 Department of Commerce, Assam University, Silchar, IN
Source
The Microfinance Review, Vol 10, No 1 (2018), Pagination: 76-87Abstract
Microfinance institutions (MFIs) are considered to be the most important mechanism for achieving financial inclusion in developing countries like India where a large population is still deprived of formal financial services. Owing to the growing importance of MFIs, it is equally important to study the efficiency of these institutions which this paper attempts to do by selecting 21 Indian MFIs with the legal status of a non-bank financial institution (NBFI) and Non-governmental organisation (NGO), and by using Data Envelopment Analysis. The study used BCC Model and Undesirable Measure Model for gauging the efficiency of the MFIs. The Spearman’s Rank Correlation was estimated to check the correlation between the scores computed by using both the models. The study further attempts to compare the efficiency between NBFI- MFIs and NGO-MFIs. Results show that the average technical efficiency (TE) score under the BCC model was 0.771 and under Undesirable Measure Model was 0.997. The findings suggest that the relatively inefficient MFIs need to minimise the Portfolio at Risk (PaR)>30 to the extent of 50% in order to become efficient. Further it indicates that there exists positive correlation between the ranks of the MFIs under BCC and Undesirable Measure Model. The results also show that efficiency of the NGO-MFIs is at par with that of the NBFI- MFIs.Keywords
MFIs, Data Envelopment Analysis, BCC Model, Undesirable Measure Model.References
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- Impact of Competition on MFIs’ Outreach: A Cross Country Analysis of India and Bangladesh
Abstract Views :206 |
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Authors
Affiliations
1 Department of Commerce, Assam University, Silchar, IN
1 Department of Commerce, Assam University, Silchar, IN
Source
The Microfinance Review, Vol 11, No 1 (2019), Pagination: 1-15Abstract
The microfinance sector, of late, is featured by intense competition, driven mainly by the forces of up-scaling, downscaling and greenfield microfinance institutions (MFIs). With increased competition, the MFIs face challenges to balance sustainability with their ultimate mission to reach the poor. Against this backdrop, the present paper attempts to assess the impact of competition on social performance of MFIs in India and Bangladesh. With the help of panel data on 75 MFIs for seven years from 2009 to 2015, the study finds that competition has no significant impact on social performance of MFIs measured in terms of outreach depth and breadth. While matured MFIs are more committed to social performance of MFIs, sustainability positively and significantly influences social performance of MFIs. The analysis also reveals that there exists a statistically significant difference in the social performance (outreach breadth and depth) of MFIs operating in India and Bangladesh.Keywords
Microfinance Institutions, Social Performance, Outreach, Commercialisation.References
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