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Performance Evaluation of the Microfinance Sector in India and its Neighbouring Countries: A Comparative Analysis

Vol 6, Issue 2, July - December 2019 | Pages: 1-21 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * Kanishka Sethi, Ph.D. Student, Department of Management, Jamia Hamdard, Delhi, India (
2. Reshma Nasreen, H.O.D, Department of Management, Jamia Hamdard, Delhi, India (
3. Matloobullah Khan, Assistant Professor, Department of Management, Jamia Hamdard, Delhi, India (

A strong presence of the Microfinance sector has been felt in many developing economies of the world. Thus, the objective of this paper is to analyze and cross-compare the performance of the industry in six South Asian countries namely Bangladesh, India, Pakistan, Afghanistan, Nepal and Sri Lanka which are graphically near to each other. To evaluate the performance of these countries, Fixed Effects Panel Data Estimations in E-views has been used. A significant difference in performance has been witnessed on all 14 parameters of performance. Extensive manual calculations have been done to cross compare and rank the countries based on the selected parameters. Bangladesh bags the first position closely followed by India while Afghanistan ranks last. A theoretical framework has been developed to understand and analyze the reasons for the difference in the performance of the six countries.


Microfinance; India; Bangladesh; Afghanistan; Pakistan; Nepal; Sri Lanka; Microfinance information exchange (MIX)

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