Published Paper Details:

As Indian MFIs inscribe their way into the capital market, the prospect of capital markets becoming a stable source of funding for the same still remains unanswered. Despite the funding options available, MFIs are not able to tap into the capital market due to various reasons. Loss of investor confidence, among other factors, following the Andhra Microfinance Crisis, 2010, has contributed a great deal to the funding difficulties faced by Indian MFIs. The factors that led to the loss of confidence are analyzed at great length in the article. MFIs and their financials before and after the Andhra crisis are to be analyzed comparatively. This helps in indicating the crisis as a critical factor for change in investor perception and prospects of MFIs forecasted until 2019. This acts as a way to improve comparability of risk and return between MFIs and other institutions. The cause and effects, when put together, may give MFIs the edge of becoming a viable investment option.