PurposeThe authors present a systematic literature review on microfinance institutions’ (MFIs) effect on poverty and how they can ensure their sustainability. The purpose of this article is to review the effect of MFIs on poverty in South Asian countries. The analysis and review of the selected corpus of literature also provide avenues for future research.Design/methodology/approachA total of 95 papers from 49 journals in 4 academic libraries and publishers were systematically studied and classified. The authors define the keywords and the inclusion/exclusion criteria for the identification of papers. The review includes an analysis of the selected papers that give insights about publications with respect to themes, number of themes covered in individual publications, nations, scope, methodology, number of methods used and publication trend.FindingsThe literature indicates the positive effect of microfinance on poverty but with a varying degree on various categories of poor. The relation between poverty and microfinance is, however, dependent on the nation under the scanner. While sustainability and outreach co-exist, their trade-off is still a matter of debate.Originality/valueThis is the first systematic literature review on MFIs’ effect on poverty in South Asian nations. Additionally, the authors discuss the literature on the trade-off between sustainability and outreach for MFIs.

PurposeThis paper aims to identify specific corporate governance determinants of asset quality in the Indian banking system and suggest a future course of action for research in the Indian banking industry. The results will guide other developing nations to handle poor asset quality in banks. Nations with economic interest in India can take cognisance from the results.Design/methodology/approachThe authors identify the determinants of asset quality for the Indian banks using novel data from 2010 to 2019 through a dynamic panel data approach. The authors analyse 45 public and private sector banks using general method of moments.FindingsThe results indicate that intensity of board activities, board functioning and ownership concentration are significant determinants of asset quality. Furthermore, the study hypotheses on board independence and board size are rejected as they do not significantly impact the asset quality. The authors also call for further research on the qualitative aspects of gender diversity, board independence and special committee activity for better insights.Originality/valueThis is the first study to identify specific corporate governance determinants of asset quality for the Indian banking system using a dynamic panel data approach with data spanning over ten years from 45 banks. Unlike all other studies, the authors have used both bank-specific and macroeconomic variables as control variables, making the results accurate and reliable. The authors also recognise the persistent nature of asset quality.

PurposeThis paper compares the impact of corporate governance determinants of asset quality between India’s public and private sector banks. The article identifies which corporate governance determinant is better utilized between the two sectors. The findings empower the banking regulatory authorities and individual bank administrators to handle asset quality in a better manner through a robust corporate governance framework. The study’s findings are also helpful for other nations to make informed judgments by countries with economic relations with India.Design/methodology/approachThe article uses a dynamic panel data analysis method on novel data to achieve the purpose of this article. Using the General Method of Moments, the authors analyze 21 public and 24 private sector banks. The data used in this study span over a decade from 2010 to 2019.FindingsAccording to the estimates, there is a significant difference in the impact made by corporate governance determinants on public sector banks vis-à-vis private sector banks. The results find that while board size has a greater impact on the asset quality of private banks, board independence has a lesser impact. Gender diversity contributes to more reduction of NPAs in private banks. The article also concludes that public banks perform better in the utilization of audit committee while private banks are better at using board meetings, CEO duality and ownership concentration.Originality/valueSeveral papers have identified the determinants of asset quality in banks in various nations. However, to the authors' knowledge, none of the papers has identified the difference in the impact of corporate governance determinants between India’s public and private sector banks separately. This article is the first to do so.

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