Summary of Findings, Implications and Conclusion

The preceding three chapters presented a discussion on the three-phased mixed-methods analysis undertaken in this study. In this concluding chapter the author revisits the findings from these three analytical phases. The inferences drawn from these findings are discussed in detail in this chapter and are categorized as theoretical, managerial and policy implications. Over all, the research investigation undertaken in this book through the three analytical phases explains the diverse issues associated with sustainability of Indian Microfinance Institutions (MFIs). The findings of the research depicts that with proper strategies in place, efficient Indian MFIs are able to sustain operations, at the capped rate of 26 per cent or even much lower rates, ranging from 13–16 per cent. It was found that age of MFI, size of MFI, credit model, regulatory status or area of operation had no significant influence on the efficient and sustainable status of these MFIs. Efficient and sustainable MFIs attribute this solely to be the effect of the managerial strategies used by them. Thus the study shows that if the MFIs regard operational efficiency and sustainability as a strategic issue that requires proper managerial attention and do not leave it to serendipity, it can sustain well within the existing capped interest rate or even much lower. But while striving for sustenance, as an unintended consequence of the best of the intentions, MFIs may experience the tendency to deviate its focus from the larger picture of client welfare and therefore the author warns the MFI management to pre-empt any such acts which goes against the spirit of the industry.