2005 India Microfinance Performance and Transparency Report - English
The India Performance and Transparency report 2005 is a brief on transparency and performance of the Indian microfinance industry.
Within Asia and worldwide, leading Indian microfinance institutions have the highest leverage. Indeed, compared to other markets in South Asia, the importance of local financial institutions is readily apparent. In contrast, Bangladeshi and Pakistani microfinance institutions have built large institutions on the backs of soft money. Indian microfinance institutions, on the other hand, deprived of shareholder capital or legal access to public deposits, have funded growth through commercial loans from local banks and development finance institutions.
The results of the MIX analysis point towards positive developments within the industry. Tapping local financial markets is likely to leave the sector well poised to continue its rapid growth. Blaine Stephens, Director of Analysis at MIX, comments: “While global microfinance talks about increasing commercial capital available to MFIs and of integrating with local financial markets, Indian microfinance defines the forward lines of this movement.
