PurposeThe purpose of this paper is to explore the factors which are crucial in determining the extent of financial inclusion in geographically remote areas. The study also aims to provide suggestive measures for banks to tap unexplored markets.Design/methodology/approachPrimary data were collected via structured questionnaire from 411 households from the states of Assam and Meghalaya in north‐east India. Factors significantly contributing to inclusion were identified using a logistic regression model.FindingsLevel of financial inclusion in north‐east India remains very low. Income, financial information from various channels and awareness of self help groups (SHGs), and education are influential factors leading to inclusion. Nearness to post office banks increases the likelihood of inclusion. Factors like area terrain and receipt of government benefit individually do not facilitate inclusion. However, recipients of government benefits in plain areas show increased level of inclusion.Research limitations/implicationsThe study was restricted to north‐east India, which limits the generalizability of the findings.Practical implicationsBanks and policy makers should work in close co‐ordination to spread financial information as those efforts are seen to directly impact inclusion, thereby providing new business opportunities to banks.Originality/valueUsing primary data, this study explores the potential predictors of financial inclusion in geographically remote areas. The study is unique in capturing the conditional relationships among variables which are bound to exist in real life scenarios. The findings of the paper are valuable for banks and policy makers.

Purpose – The purpose of this paper is to conceptualize the sustainability of micro finance institutions (MFIs) in a holistic manner. The idea is to create an index of sustainability for MFIs which includes financial and outreach aspects of sustainability. Further, it also discerns the factors which contribute to high (low) sustainability scores of MFIs. Design/methodology/approach – Data on Indian MFIs was collected from Microfinance Information Exchange database. Using the technique of order preference by similarity to ideal solution (TOPSIS), an Index of sustainability is built by aggregating multiple indicators (operational self-sufficiency ratio, the average loan balance per borrower and the number of active borrowers) to arrive at composite sustainability score of MFIs. Contributory factors of sustainability were identified using a multiple regression model. Findings – The sustainability score for MFIs ranges from a maximum score of 0.80 to a minimum of 0.26. Gross loan portfolio, No. of borrower per staff member, portfolio at risk>30 days and return on assets, are significant contributors to sustainability scores of Indian MFIs. Practical implications – The index of sustainability is a useful tool to rank the MFIs on a multi-dimensional construct of sustainability. The study also helps to unravel factors that significantly contribute to sustainability of Indian MFIs. Originality/value – This study is novel in its attempt to measure sustainability in a holistic fashion by focussing not just on the financial performance of the MFI but also on outreach dimensions. It is also unique in its approach to adopt a multi criteria decision-making technique of TOPSIS to measure sustainability of Indian MFIs.

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