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

Author

Listed:
  • 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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    11. Masood, Tariq & Ahmad, Mohd. Izhar, 2010. "Technical Efficiency of Microfinance Institutions in India- A Stochastic Frontier Approach," MPRA Paper 25454, University Library of Munich, Germany.
    12. repec:dgr:rugsom:08002 is not listed on IDEAS
    13. Anatoliy G. Goncharuk, 2013. "About The Influence Of High Gas Price On An Efficiency," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(1), pages 58-67.
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    Cited by:

    1. Mihir Dash & Anuloma Tripathy & D. Shobha & Greeshma Ramesh & Abhiyank Verma & K. Sriharsha, 2016. "Comparison of Diffusion in Telecommunications in the BRICS Economies," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(4), pages 229-235, November.

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