Modeling efficiency of Women Micro-credit Groups from a Dual Perspective

Rural Women Interaction in Paschim Medinipur District, WB, India

With the increasing crises in microfinance sector, it is now imperative to analyse the social performance of micro-credit groups along with their financial performance in order to ensure sustainability. Econometric frontier techniques using data envelopment analysis (DEA) were used to calculate the social and financial efficiencies of SHGs from Kharagpur-I Block of Paschim Medinipur District, West Bengal. Sensitivity analysis was carried out through bootstrapping to obtain robust and valid inferences. Delay in monthly loan repayments and irregular attendance in group meeting were quite prevalent, which leads to financial and social inefficiencies.

Mr. Anirban Pal, Research Scholar (RDC, IIT Kharagpur), ARF Lab Member