The study was assigned with focus on impact of ‘responsible lending practices’ adopted by MFIs in their functioning. Apart from studying the MFI practices, the study has also identified broad gaps and suggested remedial action plan to bridge those gaps. The Study has documented the complement of credit plus activities being undertaken by MFIs and laid out a road map for the future.
The Report highlighted the challenges in terms of viability and sustainability of operations of MFIs, viz., cost of source of funds from banks and equity investments, the cost of operations and margins capped by regulation resulting in reduced sustainability of operations, skilled manpower and risk management frameworks and legal structure of the microfinance institutions (MFIs).
The assignment was for preparing a Report on Human Resource Management Practices in Indian MFIs. In the current scenario when emphasis is laid on Client Protection Principles and Responsible Lending Practices, it is essential for the MFIs to have a suitably sensitised and trained HR.
The Study was assigned to assess the impact of the ‘Portfolio Risk Fund’ on the microfinance sector and document the findings on, whether MFIs were able to raise additional debt funds for onlending to the ultimate beneficiaries, setting up of new financial intermediaries in the under-served states, and the socio-political impact of the fund on the poor, especially women in the under-served/un-served regions of the country including the changes in their social and economic profiles.