The consolidated net profit of Regional Rural Banks (RRBs) rose to an all-time high of Rs 10,176 crore in the financial 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 review 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 FY25-26 represents a substantial increase compared to the consolidated net profit of Rs 6,820 crore reported in FY24-25.
Alongside profitability, the asset quality of rural lenders showed steady progress, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) declining to historic lows of 5.3 per cent and 2.1 per cent, 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 per cent 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 marginalised 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 Secretary emphasised that RRBs must accelerate the adoption of modern banking technology and the digital delivery of financial services to improve operational efficiency and customer experience, while 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 of the country.
Secretary, DFS appreciated 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 handhold 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.
