Efficiency of Micro Finance Institutions in India: A stochastic distance function approach

dc.contributor.author	Kumar, Nitin
dc.contributor.author	Sensarma, Rudra
dc.date.accessioned	2016-05-26T07:41:36Z
dc.date.available	2016-05-26T07:41:36Z
dc.date.issued	2015-07
dc.identifier.uri	http://hdl.handle.net/2259/679
dc.description	1 Reserve Bank of India, 2 Associate Professor, Economics Area, Indian Institute of Management Kozhikode	en_US
dc.description.abstract	We examine the efficiency-outreach debate in the context of Indian Micro Finance Institutions (MFIs). We employ the stochastic distance function approach for 75 MFIs during 2004-2011. We find that there are significant inefficiency effects but efficiency is improving over time. Among the determinants of inefficiency, average loan balance per borrower and number of women borrowers appear to improve efficiency. This suggests that the efficiency-outreach debate is more nuanced than is presented in the literature and depends on the way outreach is defined. Profitability, size and leverage seem to increase efficiency whereas age of the MFI is associated with higher inefficiency.	en_US
dc.language.iso	en	en_US
dc.publisher	Indian Institute of Management Kozhikode	en_US
dc.relation.ispartofseries	;IIMK/WPS/184/ECONOMICS/2015/020
dc.subject	Micro Finance Institutions	en_US
dc.subject	Efficiency	en_US
dc.subject	Stochastic Distance Function	en_US
dc.title	Efficiency of Micro Finance Institutions in India: A stochastic distance function approach	en_US
dc.type	Working Paper	en_US