Overall Performance Evaluation of select Microfinance Institutions – an Empirical Analysis

Abstract

Microfinance firms are viewed predominantly as instruments of social change, their performance has been often measured by non-financial parameters. The concept of social performance has seemed to overshadow the state of financial health of these enterprises. A microfinance institution is measured for financial sustainability based on its good financial accounts and the recognized accounting practices. The main objectives of this paper are to study the Brief Profile of Select Microfinance Institutions, to review the Overall Performance of select MFIs and to evaluate the Yield on Gross Portfolio of Select Microfinance Institutions. The data collected for the study includes secondary data. The various sources used to collect secondary data include research papers, journals, Status of Microfinance in India reports published by NABARD and various other websites. The secondary data collected is analyzed using various statistical tools and techniques such as one way ANOVA. The technique is used to identify if there exist a significant difference in the mean of different of select MFIs. As such, it has been observed based on the analysis that the average yield on gross portfolio of SML (27.81 per cent), BSFL (24.30 per cent), CMC (24.15 per cent), GVMFL (31.38 per cent), and GFSPL (28.57 per cent) recorded above the industry aggregate average (23.93 per cent), which depicts that these MFIs were relatively different in achieving high yielding on gross portfolio as compared to that of other MFIs.