© 2014

Sustainability of Indian Microfinance Institutions

A Mixed Methods Approach

  • Documents the understanding of the sustainability of the Microfinance Institutions (MFIs) gained through a mixed-methods research investigation

  • Answers pertinent questions to enable Indian MFIs to march towards efficient and sustainable operations without losing focus on their clients

  • Contains findings to revive lost hope for the Indian microfinance industry at a time of crisis


Part of the India Studies in Business and Economics book series (ISBE)

About this book


For any practicing social entrepreneur, building a sustainable organization that stands the test of time remains a formidable challenge. Using a mixed-methods research approach, this book investigates, specifically in the Indian context, the concept of sustainability in one of the most celebrated form of social enterprises of our times — Microfinance Institutions (MFIs). What are the determinants and discriminants for the sustainability of Indian MFIs? How are these factors being managed by operationally efficient Indian MFIs that remained sustainable at reasonable interest rates, even before the onset of the crisis and imposition of ceilings in Indian microfinance markets? What does the Indian microfinance crisis teach us about sustainability management and mismanagement? The discussion centred on these questions, depicts sustainability to be a strategic issue that needs managerial attention and not left to serendipity.

At a time when the industry is recovering from the adverse effects of a crisis and questions the fixed interest rate imposed by regulators, the findings mentioned in the book revive the lost hope for the Indian microfinance industry. By deciphering the strategies used by efficient and sustainable MFIs and discussing the lessons that the crisis has imparted to the Indian microfinance markets, this book enables Indian MFIs to march towards efficient and sustainable operations, without losing focus on their clients.


Inclusive Financial System Microfinance Microfinance Management Strategic Finance

Authors and affiliations

  1. 1.School of Management & Labour StudiesTata Institute of Social Sciences, Centre for Social EntrepreneurshipMumbaiIndia

About the authors

Nadiya Marakkath is an Assistant Professor at the Centre for Social Entrepreneurship, School of Management and Labour Studies, Tata Institute of Social Sciences (TISS), Mumbai. She teaches academic courses in finance, microfinance and research methods to M. A. social entrepreneurship students at TISS. She enjoys nurturing the dreams of young social entrepreneurs and therefore involves herself in incubation and funding initiatives for social entrepreneurship students at TISS. She received her PhD in financial management, with specialization in microfinance and has doctoral research experience in finance at the National Institute of Technology, Calicut and the Indian Institute of Technology Madras, Chennai, India. Finance systems and their regulatory aspects, microfinance sustainability management, legitimacy and sustainability challenges in social entrepreneurship, entry and exit issues of social entrepreneurs, performance management for social ventures and design of hybrid ventures are her areas of research interest.

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