Credit and payments reporting platform for B2B transactions Recordent in a survey on Tuesday noted that 52 per cent of B2B payments remain overdue for more than 90 days in major Indian hubs including Hyderabad, Kolkata, Chennai, and Pune.
The survey conducted on B2B payment trends and challenges faced by over 2,800 of Recorded member businesses from across the country during FY21-23 stated that Mumbai showed a much better payment behaviour with 29 per cent of payments overdue for more than 90 days. Other cities including Bengaluru, Delhi NCR, and Ahmedabad recorded percentages ranging from 42 per cent to 49 per cent.
With respect to payments collected in time, Mumbai and Ahmedabad led with 36 per cent and 38 per cent of trade receivables collected in time, the survey said.
On the other hand, Chennai, Pune, and Hyderabad lagged with “dismal figures of 18 per cent, 19 per cent, and 22 per cent, respectively. This data highlights a notable disparity in repayment efficiency among Indian cities.”
Speaking on the findings, Winny Patro, CEO and Co-founder of Recordent, said, “The survey provides valuable insights into the payment dynamics across major Indian cities, underscoring the challenges faced by MSMEs and SMEs. Businesses are increasingly looking for transformational tools that can streamline collections management, helping to overcome these challenges.”
Importantly, to support stressed MSME loan accounts, Finance Minister Nirmala Sitharaman in her full budget speech in July had announced that credit will be provided through a guarantee from a government-promoted fund. The minister said it would enable stressed MSMEs to continue their business operations and avoid getting into the NPA category.
However, the gross non-performing assets in MSME loans by scheduled commercial banks had dropped to Rs 1.31 lakh crore in FY23 from Rs 1.54 lakh crore in FY22, FE Aspire had reported earlier. MSME GNPAs in FY23 were the lowest in the past five years, peaking at Rs 1.83 lakh crore in FY20.