An Analytical Study of Outreach and Financial Performance of Selected Micro Finance Institutions in India

Author:Vinay Pal Singha*, Hari Om Guptab

Abstract:
Poverty is one of the foremost challenges facing the Indian government; various measures have been taken to eradicate poverty. The microfinance model hopes to raise funds by lending the money using different models in this situation. Several studies have been conducted worldwide, and it is widely accepted that microfinance initiatives have made a significant difference to target groups that do not have easy access to credit. However, the financial feasibility of microfinance institutions is increasingly questioned. In the long run, MFI must be economically viable and sustainable. This white paper examines MFI's performance in terms of outreach and financial performance. It examines the reach and profitability of selected microfinance institutions operating in India between 2010 and 2017. These institutions need to pursue high goals through superior financial performance that operate financially efficiently for disadvantaged groups' benefit to continue their operations.

Keywords:Key Words: Microfinance, financial sustainability, Return on equity, Operational self-sufficiency, Return on Assets.

DOI:10.46333/ijtc/10/2/12

International Journal of Trade & Commerce (Vol: 10 Issue:2)