Sustainability Of Mutual Benefit Nidhi Companies: A Financial Performance Analysis

The financial viability of Mutual Benefit Nidhi Companies is a pressing issue in India’s finance sector. These member-based companies serve a vital function at the grass roots and are typically less studied than the more established forms of finance. Analysis of the financial viability of Sri Karpaga Vinayagar Mutual Benefit Nidhi Ltd. in Kumbakonam, India is performed by exploring the impact of savings behaviour, loans, service quality and overall satisfaction on the company’s financial performance, and consequently, its long-term viability. Primary data was gathered using a structured Likert-type questionnaire to evaluate 70 members of this institution. Statistical tools, such as mean analysis, Pearson correlation, one-way ANOVA and multiple regression, were conducted using Microsoft Excel software. Mean analysis indicates that the financial performance of this institution is of good repute, with a mean score of 12.61 which indicates a high degree of member support. Correlation analysis establishes a strong positive relationship between financial performance and sustainability (r = 0.85). Regression analysis found that 79.06% of the variance in sustainability is explained by the independent variables used in the study, and that overall satisfaction had the largest impact (β = 0.497). ANOVA demonstrated statistically significant differences among the variables of the study (F = 3.61, p = 0.003). The study findings suggest that Nidhi companies have long-term viability through the simultaneous completion of all four variables.