Financial Sustainability of NBFC-MFI Operating in Gujarat

Abstract

An MFI is financially sustainable when it achieves desired rate of Operational Sustainability (OS) and desired rate of Return on Equity (ROE). The present study examines financial sustainability of NBFC-MFIs operating in Gujarat. It also examines association between dependent factor with independent determinants of financial sustainability i.e. DER, OER, WOR, YGP, and SE. The studys finding leads to the conclusion that NBFC-MFIs in Gujarat are financially not sustainable though they are able to achieve desired OS but fail to achieve desired ROE. Further YGP, OER and WOR are the significant predictor variables in determining the financial sustainability of selected MFIs.