Sustainability of microfinance institutions: the role of outreach and financial sustainability
by Karam Pal Narwal; Manoj Kumar Yadav
International Journal of Financial Services Management (IJFSM), Vol. 8, No. 4, 2016

Abstract: This paper aims to examine how selected outreach and financial indicators impact on the sustainability of Indian microfinance institutions. It adopts a quantitative approach based on the secondary data from conveniently sampled 40 microfinance institutions. A panel data technique is employed for model specification. It is shown that outreach and financial sustainability indicators affect to each other. Outreach indicators have a positive association with the profitability of microfinance institutions. Repayment levels of the loan have a positive impact on the outreach and negative impact on the financial sustainability. Microfinance institution may be focused on the repayment rate for attaining the level of sustainability. A clear balance may be in social objective and institution sustainability to ensure the sustainability of microfinance institutions is recommended. Studies on the trade-off between outreach and financial sustainability are limited especially in India. Its application added some precious characteristics in the microfinance sector.

Online publication date: Mon, 30-Jan-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Financial Services Management (IJFSM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com