Significant Risk Events in Indian Banks in the Recent Past

Risks are integral part of banking operations. There have been three clear instances where Indian Banks have seen materialization of risks in recent months. This paper presents these events and important lessons in risk management from these. Click on the link below to read the document. Significant Risk Events in Indian Banks in the Recent […]

Mudra Bank: Concept and Offerings

The Hon’ble Finance Minster, in his budget speech on February 28, 2015, had proposed to create Micro Units Development Refinance Agency (MUDRA) Bank. The bank was finally launched on April 8, 2015 by the Hon’ble Prime Minister. The bank has been created specifically to finance a very large number of microenterprises in our country which […]

Code of Conduct Assessments (COCA): Evolution and Growing Importance

M2i maintains that for micro-finance to sustain, sound operational management practices, which strongly emphasize on ethical behavior and responsible lending are imperative. In order to assess adherence to ethical operational practices, M2i pioneered Code of Conduct Assessments (COCA), performing the first of these assessments in the microfinance sector across the globe. Click on the link below to […]

Impact of Code of Conduct Assessments

Between 2010 and 2014, over 100 Code of Conduct Assessments have been carried out by all the service providers, with M2i performing 42 of these assessments. The COCAs commissioned by SIDBI have been published on its website. Since these reports are in the public domain, there is increased focus on the part of MFIs to […]

External evaluations: How critical are they?

External evaluations are inherently important for organizations implementing projects or programmes. Evaluation by external agencies bring value that cannot be gained through operational monitoring or internal audits done internally by the organization. Among other benefits, external evaluations help in building investor and funder confidence and challenging entrenched practices which are often not pointed out by […]

M2i discussion note: Independent Directors can help MFIs in Sustainable Value Creation

MFIs where decision making ensures that expectations of stakeholders are met to a reasonable extent, and stakeholder concerns are adequately addressed, can be considered to be moving along a path that leads to sustainable value creation. Independent Directors, ie, those Board members who do not represent the executive-management, or investors and lenders, can play a […]

Financial inclusion with caution

Regulations, in a financial system provide the assurance that only the financial institutions that are worth operating operate and the general public’s interests are protected. If the regulations rigorously protect the interest of the public it builds faith in the financial system. This also relieves the people from doing their own research and analysis before […]

Enabling conditions for positive impact for MFI clients

There are certain enabling conditions under which the clients are likely to benefit more from provision of microfinance. Our research indicates that the following enabling conditions allow clients to benefit more from provision of microfinance. Skills: In almost all the instances where positive impact has been witnessed, clients had required skills necessary for the enterprise […]

“Drive to Perform” of Operational Employees of MFIs

The operational employees of MFIs have challenging work life which includes extensive work in the field as well as back-office work. At the same time, these employees are the key to an MFI’s success as their efforts are responsible for the growth as well as the quality of MFI loan portfolios. More importantly, they are […]