Background/ objective

A microfinance institution (MFI) sought CRISIL’s help to tackle issues related to poor transparency, inadequate risk management and limited funding access. That led to the development of MFI Grading, a tool that assesses the performance, risk profile and compliance status of microfinance institutions. 

Solutions

• We developed the MICROS methodology, an adaptation of the globally accepted CRAMEL framework used to evaluate banks and financial institutions. The MICROS methodology defined indicators, baselines and benchmarks to assess the MFI
• Our comprehensive research covered financial and management aspects as well as industry benchmarking, financial trends and projections
• We reviewed the code of conduct, which includes client protection, governance, transparency, recruitment, grievance redressal and data sharing
  
• We drew up a detailed report on what is lacking and how to improve the code of conduct and performance of the MFI 
  

Execution highlights 

Impact on client