Comparing the performance of MFI’s with other Commercial Bank in KPK

Abstract

ABSTRACT

Micro Financing is one of the most important phenomena for growth as well as a mechanism of generating employment opportunities and speed up the national growth particularly for developing countries like Pakistan. In Current research works we try to examine the effect of micro financing on customer’s .for this purpose many commercial banks like MCB. Khyber Bank. Allied Bank and other financial institutions performance was measured with Micro financing Institutions and Banks like Khushali Bank, First Micro Finance Bank,SRSP and NRSP in Rural Areas of Khyber Pakhtoon Khwa. . For this purpose comparison is made on behalf of Capital Adequacy Ratios (CARs), Debt equity ratios (DERs), Return on Assets (ROEs), Net Profit Margin (NPMs), Operating Expenses to assets (OPTAs) and others through applying ANOVA statistical method. Results indicate that there is big difference between the mechanisms of providing loans to community. In many discipline’s the performance of MFIs was satisfactory but because of the problems likeno policy for  liberalized interest rates,  minimum opportunities for institutionalization and mobilization of savings are the hurdles in effective us of the concept named Micro financing.

Key Words; Micro Financing, ANOVA s, Commercial Bank, financial institutions,