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Abstract
The progress made by micro finance in India in the last decade has been significant. It has been successful in supporting equitable growth at the bottom of the pyramid (BoP). Reserve Bank of India defines micro finance as "provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban or urban areas for enabling them to raise their income levels and improve their living standards". The mission of Micro Finance Institutions (MFIs) all over the world has been to lift billions of people out of poverty through financial inclusion. This social mission requires MFIs to be financially sustainable. It is essential that players in this sector are not only able to cover their costs but also generate profits. Thus the question arises, should micro finance be profitable? If it is profitable can it be socially responsible. Herein lies the challenge of reconciling financial profitability with social responsibility. The study answers this question by analyzing the financial and social impact of the Indian Micro Finance Sector and a select MFI in India and concludes that financial and social returns can be complementary and mutually beneficial.