Collection efficiency is simply the money collected as a percentage of the amount demanded in a loan repayment. This has become a key yardstick to judge bank earnings in COVID times and especially after a six-month moratorium on loan repayments. For long, the rising non-performing assets (NPAs) has cast a shadow on Indian banks. Rising collection efficiency means that borrowers are repaying their loans. It is also a sign that things are getting back to normal and the economic recovery is gaining traction. While collection efficiency is around 99 percent in usual times, it has touched 95 percent for many lenders recently. ​