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TaxhintAdvisors

October 7, 2026 · Guides

Business Dashboard: Collection Efficiency and Portfolio at Risk

A portfolio at risk dashboard shows, on one screen, how much of your loan book is slipping and how well you are collecting what falls due. For a society or lender with a few hundred or a few thousand loans, this is the screen that tells the owner where to look before the auditor does.

In this guide

What the dashboard measures

Two measures do most of the work, and both are simple once put in words.

  • Collection efficiency: the amount actually collected in a period, divided by the amount that was due in that period. If a branch had Rs 10 lakh due and collected Rs 9 lakh, it collected nine-tenths of what was due.
  • Portfolio at risk (PAR): the outstanding principal on loans that are overdue beyond a chosen number of days, divided by the total outstanding principal. It is usually read at several day-bands, such as 30 days or 90 days overdue.

These definitions vary slightly between organisations, so write down yours. Overdue and NPA classification rules depend on your lender type; see penalty, overdue and NPA features and check the current rules that apply to you.

Taxhint’s core banking system software page lists customisable dashboards, branch-wise reports and overdue tracking. It does not name PAR or collection efficiency as ready-made measures, so confirm those in the demo.

How to use it, step by step

  1. Manager: opens the dashboard first thing in the morning, after the previous day is closed.
  2. Manager: checks collection efficiency for yesterday and month to date, branch by branch.
  3. Manager: opens PAR by day-band and clicks through from the total to the list of accounts behind it.
  4. Branch head: takes the list of newly overdue accounts and assigns each to a staff member or agent.
  5. Owner: looks weekly at the trend, not just today’s number, and asks what changed.
  6. Accountant: keeps a dated copy for the monthly board report.

How it helps the business

Without these measures, an office usually learns about a bad month when cash runs short. With them, the early signs are visible while there is still time to act.

  • Earlier action. A rising 30-day figure is a call list today. A rising 90-day figure is a much harder conversation later.
  • Fair comparison. Branches of different size can be compared on efficiency, which is a ratio, not a rupee total.
  • Better board meetings. Directors see one trend line instead of a stack of ledgers, as in the daily, monthly and board reports.

The number to watch is the direction of PAR in each day-band, month on month. Do not compare your figure to someone else’s. Compare it to your own last quarter.

Staff-level views of the same numbers feed into targets and performance dashboards.

Common mistakes

  • Reading efficiency without looking at what was due. A good ratio on a small due amount hides a lot.
  • Looking only at the overdue amount instead of the whole outstanding principal on those loans.
  • Not closing the day before reading. Unposted receipts make the dashboard look worse than reality.
  • Rescheduling loans to make PAR look better. That hides the problem and may breach your rules.
  • Using different definitions in different months.
  • Giving every user the full dashboard. Branch staff may only need their own branch.

What to check in a demo

  • Can you see both measures, and does the vendor explain the formula in words?
  • Can you choose the overdue day-bands yourself?
  • Can you click from a total to the accounts behind it?
  • Is there a branch-wise and agent-wise cut?
  • Does it update after day end, or in real time?
  • Can you take a dated snapshot for the board?
  • Is access to the dashboard controlled by user rights?

Want to see this working on your own data? See the core banking system software, ask for a live demo on +91 93117 95484, or write to mail@taxhint.in.

FAQs

What is a good PAR figure?

There is no single answer. It depends on the product, the borrower group and your own history, so track your trend and discuss targets with your CA or board.

Is collection efficiency the same as recovery rate?

Not always. Some offices include arrears collected in the numerator and some do not. Fix one definition and keep it.

Can PAR be shown branch-wise?

A good system should show it by branch, agent and product. Confirm this in the demo.

How often should the owner look at it?

A quick look daily, a proper review weekly, and a dated copy monthly for the board.

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