Open AccessFinancial Performance Analysis of NBFC-MFIs in India using TOPSIS and IV-TOPSIS
Author(s) -
Priyanka Roy,
Binoti Patro
Publication year - 2021
Publication title -
international journal of mathematical, engineering and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.228
H-Index - 10
ISSN - 2455-7749
DOI - 10.33889/ijmems.2021.6.5.086
Subject(s) - microfinance , topsis , benchmarking , outreach , business , sustainability , financial inclusion , ranking (information retrieval) , finance , accounting , financial services , economic growth , economics , marketing , computer science , ecology , mathematical economics , machine learning , biology
The policymakers around the globe have been emphasizing on financial inclusion in line with sustainable development goals 2030 of the United Nations. Developing countries are still behind in ensuring greater financial inclusion especially for women. While banks are the apex financial institutions in any country, microfinance institutions proved to be promising in advancing financial inclusion because of its better reach to women in remote areas. Thus in a country like India, the outreach and sustainability of microfinance institutions is of utmost importance. This paper aims to rank the performance of microfinance institutions listed by Reserve Bank of India on the basis of their outreach, sustainability, quality and efficiency. The ranking is done separately for five years (2014-15 to 2018-19) using Technique for Order of Preference (TOPSIS) method while overall ranking and benchmarking for five years has been done using interval valued TOPSIS (IV-TOPSIS) method. The robustness of the study has been checked through sensitivity analysis. The overall results portray Satin Creditcare Network Limited as the best performing NBFC-MFI while BWDA Finance Limited as the worst performer for the combined period of 5 years