New Delhi, Aug 25: Regional Rural Banks (RRBs) recorded an all-time high consolidated net profit of ₹10,176 crore during the Financial Year 2025-26, while their total business crossed ₹13.5 lakh crore, according to a review meeting held in Delhi on Tuesday.
The review meeting on the performance of RRBs was chaired by the Secretary, Department of Financial Services (DFS), and attended by the Chairman of NABARD, chairpersons of all 28 RRBs, and officials from DFS, Sponsor Banks, the Reserve Bank of India and SIDBI.
At present, 28 RRBs are operating through 22,273 branches across 26 States and three Union Territories, covering around 700 districts.
The consolidated net profit of RRBs rose from ₹6,820 crore in FY 2024-25 to ₹10,176 crore in FY 2025-26. Their total business crossed ₹13.5 lakh crore during the year, surpassing the business level of some individual Public Sector Banks.
The asset quality of RRBs also improved, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) reaching all-time lows of 5.3 per cent and 2.1 per cent, respectively.
RRBs continued to achieve all targets and sub-targets under Priority Sector Lending, reflecting their role in extending credit to marginalised and underserved sections.
The banks also strengthened financial inclusion efforts, opening more than 54.98 lakh new accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) during FY 2025-26.
The Credit-Deposit Ratio of RRBs also increased to an all-time high of 75.2 per cent during the year, indicating greater deployment of deposits as credit.
The DFS Secretary emphasised the need for RRBs to accelerate adoption of modern banking technology and digital delivery of financial services to improve operational efficiency and customer experience.
He called for expanding access to banking services in rural and far-flung areas and ensuring that the benefits of digital banking reach every section of society, including the youth.
The Secretary appreciated the overall improvement in the performance of RRBs and called upon them 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 also urged Sponsor Banks to provide greater support to RRBs in their growth journey, particularly in strengthening their IT infrastructure.
The chairpersons of RRBs were encouraged to take personal initiative to increase credit flow to sectors specific to their respective areas of operation and, wherever possible, introduce new and innovative avenues of lending.
