Sa-Dhan Report on Client Protection and Social Performance of Indian MFI’s

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Sa-Dhan has released a report on the Client Protection and Social Performance of Indian MFIs. It is the first of its kind report presenting two studies with samples of Sa-Dhan members conducted in 2010/2011. The studies are part of a comprehensive framework to implement the Sa-Dhan Code of Conduct. The report can be downloaded at the link below.

Sa-Dhan Report on Client Protection and Social Performance of Indian MFI’s


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Sa-Dhan Report on Client Protection and Social Performance of Indian MFIs-pdf-77pages-2.35MB


The Microfinance sector in India has achieved incredible growth in terms of both outreach and sustainability. The mainstream financial sector has increasingly recognized the microfinance sector as an important ally in expanding financial inclusion to the un-reached and under-reached segment of the population.

Sa-Dhan has been publishing financial data for the past six years. During the previous few years, the need for collecting social data has emerged. The effect of Microfinance on clients’ lives- the social performance of Microfinance institutions (MFIs) – moved into the focus of the public. The government, regulators, and other stakeholders want to know more about the mission, processes, and outcomes of Microfinance institutions.

This report is the result of Sa-Dhan’s first systematic attempt to collect and analyze social performance data from its members. It covers the information on the implementation of its Code of Conduct and the social performance of members. Altogether 109 members have reported on the Code of Conduct and 63 on social performance. Sa-Dhan’s work on the Code of Conduct has been evolved over the years as the industry grew. The crises that hit the industry underlined the need for implementation of the Code. The results of the report could be interpreted in the present crisis in Andhra Pradesh for realigning our collective efforts to avert such a crisis in the future. The urgent issues of client protection such as transparency and fair practices are given importance. They will put a perspective on the problems arising from inside and outside the sector. Besides, the results of social performance would feed into strategic initiatives of those connected to the sector.

We thank all the members who contributed data for the report in spite of their preoccupation in responding to the recent developments. A dedicated team consisting of Dr. K. Natarajan, Mr. Ardhendu Nandi, and Mr. Thomas Mehwald worked on this reporting project. They deserve our special acknowledgment.

We are grateful to Ms.Frances Sinha and Ms.Komal Rana, EDA Rural Systems for the technical guidance in finalizing the Social Performance indicators and analysis of data for the Social Performance of the report.

The technical support extended by Mr. Atul and Mr. Deepak Alok of M2i for conducting field validation of the Code of Conduct compliance reports is duly acknowledged.

We are thankful to Ms. Achla Savyasaachi, Mr. R. Prabha, Mr. K. Balasubramanyam, Mr. Somesh Dayal, Mr. Nilesh Arya for giving feedback and guidance for the project team.

We gratefully acknowledge the generous funding support of Michael & Susan Dell Foundation and Ford Foundation routed through EDA Rural Systems for the section on social performance.

As the report is the first-ever product on social performance analysis of its members by Sa-Dhan, the feedback from all the readers would help the team refine the approach in the next phase of reporting. We welcome critical feedback and suggestions from the readers.

Mathew Titus

Executive Director, Sa-Dhan


Experienced Entrepreneur with a demonstrated history of working in the internet industry.

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