Economic Performance of Micro Financing Institution: An Analysis

An attempt has been made to examine economic performance of micro financing institutions in the
country over the period. The analysis revealed that there is increasing change in opening of branches
of micro-financing institution in which the rate of change was about 8 percent per annum. In respect to
clients the rate of growth per year was observed to be 23 per cent which was pronounced more in
clients of small micro-financing group. The employment in micro-financing organization showed
positive changes and increased at the rate 17 per cent per annum. The gross loan portfolio of micro
financing institution grew at annual rate of 75 per cent in which rate of growth of GLP of small micro
financing was higher in comparison of medium and large groups of MFIs. The loan disbursement
amount further increased at a rate of 73 per cent in which it was found higher rate in small size group
of MFIs. The outstanding loan per client grew at 24 per cent per annum which was less than rate of
growth of disbursement. It was also observed that southern region of the country was ahead in
operating of micro-finance institutions. However, eastern region, western region and central region of
the country have also made good progress in establishment of micro-financing institution. The north
region and North-east are lagging behind that require special attention for development of microfinancing
institution. On the whole there have been significant changes in economic performance of
micro-financing institutions of the country.