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Efficiency Measurement for MFIs in India Using the Control-Efficiency Model

Author

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  • Mihir Dash

    (Alliance University, India)

  • Shyam Lal Dev Pandey

    (Alliance University, India)

Abstract

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.

Suggested Citation

  • Mihir Dash & Shyam Lal Dev Pandey, 2016. "Efficiency Measurement for MFIs in India Using the Control-Efficiency Model," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(3), pages 156-161, August.
    • Handle: RePEc:ods:journl:v:5:y:2016:i:3:p:156-161
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    References listed on IDEAS

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