Working Papers

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 […]

“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 […]

M2i Discussion Note: Credit Risk Management in MFIs

The credit risk measurement systems in MFIs need to evolve substantially in order to sustainably provide collateral-less loans to poor clients. While lending through the group guarantee mechanism has ensured sound portfolio quality for long periods of time, we have in the recent past witnessed situations when there has been a rapid decline in portfolio […]