Abstract

MFIs formed as societies and trusts which primarily provide credit services to their clients are called NGO MFIs. NGO MFIs providing microfinance do not have a specific legal and regulatory framework governing their formation or activities. They are civil society organizations that generally are established under state-level societies and trust acts. NGO MFIs are funded by donor support in the form of revolving funds and operating grants. This paper aims to compare the financial performance of NGO MFIs in India and Bangladesh. The study is primarily based on secondary data. The variables, such as institutional characteristics, financing structure, outreach indicators, overall financial performance indicators, revenue and expenses, efficiency and risk and liquidity have been considered to analyse the financial performance of 16 Indian NGO MFIs and 23 Bangladeshi NGO MFIs. The Mann-Whitney U test has been used for analyzing the data. It is found that the Indian NGO MFIs stand better than that of Bangladesh in many aspects, though Bangladesh is the place of origin for the concept of microfinance and Microfinance Institutions.

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