New Delhi [India], August 25 (ANI): The consolidated net profit of Regional Rural Banks (RRBs) rose to an all-time high of Rs. 10,176 crore in fiscal year 2025-26, while their total business crossed Rs. 13.5 lakh crore, surpassing the business levels of several individual public sector banks, according to the Ministry of Finance.
The financial performance was reviewed during a comprehensive meeting held in New Delhi under the chairmanship of the Secretary, Department of Financial Services (DFS). The meeting was attended by the chairman of NABARD, chairpersons of all 28 RRBs, and senior representatives from the Reserve Bank of India, the Small Industries Development Bank of India (SIDBI), sponsor banks and the Department of Financial Services.
According to data shared by the Ministry of Finance, the net profit registered in FY 2025-26 represents a substantial increase from the consolidated net profit of Rs. 6,820 crore reported in FY 2024-25.
Alongside profitability, the asset quality of rural lenders showed steady improvement, with gross non-performing assets (GNPA) and net non-performing assets (NNPA) declining to historic lows of 5.3 percent and 2.1 percent, respectively.
At present, the 28 RRBs operate through a network of 22,273 branches across 26 states and three Union territories, catering to approximately 700 districts nationwide. The institutions also recorded an increasing trend in their credit-deposit (CD) ratio, which climbed to an all-time high of 75.2 percent during the financial year.
In the area of targeted credit delivery, RRBs achieved all prescribed targets and sub-targets under Priority Sector Lending, maintaining their focus on underserved and marginalized segments. The banks also expanded rural financial inclusion by opening more than 54.98 lakh new Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts during FY 2025-26.
The DFS secretary emphasized that RRBs must accelerate the adoption of modern banking technology and the digital delivery of financial services to improve operational efficiency and customer experience. The banks were also urged to expand access to banking services in rural and remote areas and ensure that the benefits of digital banking reach every section of society, including the country’s youth.
The DFS secretary praised the overall improvement in the performance of RRBs during FY 2025-26 and called upon all RRBs to sustain the momentum and further improve their performance so that the benefits of formal banking and government-sponsored schemes reach the last mile.
He urged all sponsor banks to support their RRBs in their growth journey, particularly in strengthening their IT infrastructure. He also encouraged the chairpersons of all RRBs to take personal initiative in boosting bank credit flow to sectors specific to their areas of jurisdiction and, wherever possible, introduce new and innovative avenues of lending. (ANI)
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