An empirical study on financial performance of micro finance Institutions

The micro finance sector in Tamilnadu has been developing in a rapid manner in South India. The need for microfinance in Tamilnadu has been determined by several restrictions over the advancement of banking services in remote areas by commercial banks. The key objective of every single microo-finance institution in Tamilnadu is to maintain profit stability and progress in its sustainability. This performance analysis attempts to evaluate the feasibility, solidity, and fertility of MFIs. The present paper aims to analyze the financial performance of MFIs in Tamilnadu. All the data required for the study were collected from the annual reports of various MFIs. Result ends up with positive as well as negative results highlight the greater impact of the EAR and an adverse outcome of DLR over the financial performance of MFIs.