Financial Performance of Micro-Finance Institutions in North East India

Abstract

Micro-Finance Institutions have been playing a vital role in alleviating poverty and supporting the financially excluded group of people. However, owing to the potentialities of Micro-Finance Institutions in North East India, the present study tries to focus on the financial performance of the Micro-Finance Institutions in this region, As sound financial condition is of utmost importance for the functioning of the Micro-Finance Institutions. Seven Micro-Finance Institutions have been selected for the study. Financial ratios have been calculated for analyzing the financial performance of the Micro-Finance Institutions and finally they were ranked according to their performance. One way ANOVA has been used for checking whether there exists any significant statistical difference between the sample means. Results showed that BANDHAN proved to be the most financially sound Micro-Finance Institution and GRAMEEN SAHARA proved to be the last. This was observed that there is statistical significant difference between the sample means in case of most of the accounting ratios. Scheffe's test has further been used to examine the combination of Micro-Finance Institutions that caused statistical difference between the sample means.