Efficiency Measurement for MFIs in India Using the Control-Efficiency Model
Mihir Dash and
Shyam Lal Dev Pandey
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Mihir Dash: Alliance University, India
Shyam Lal Dev Pandey: Alliance University, India
Journal of Applied Management and Investments, 2016, vol. 5, issue 3, 156-161
The role of microfinance institutions is to provide credit to the poor who have no access to commercial banks. A major challenge for microfinance institutions is that of financial sustainability, with several of them appearing to be often loss making. Recently, however, there has been a renewed focus on the financial sustainability and efficiency of microfinance institutions, which is essential for the well-being of the financial system in developing countries. This study examines the efficiency of microfinance institutions in India using a modified form of Data Envelopment Analysis. The data for the study was collected on a sample of thirty microfinance institutions in India from the Microfinance Information eXchange (MIX). The results of the analysis indicate the inefficiencies in the microfinance sector.
Keywords: microfinance institutions; financial sustainability; efficiency; Data Envelopment Analysis (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ods:journl:v:5:y:2016:i:3:p:156-161
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