New Delhi, August 25: The Regional Rural Banks (RRBs) in India have reported their best financial performance to date for the fiscal year 2025-26. An official statement released following a review meeting by the Department of Financial Services revealed that the net profit of RRBs surged to a record ₹10,176 crore, up from ₹6,820 crore in the previous fiscal year 2024-25.
The statement highlighted a significant improvement in the asset quality of RRBs. The gross non-performing assets (GNPA) ratio has dropped to a record low of 5.3%, while the net non-performing assets (NNPA) ratio has also decreased to 2.1%. This indicates a stronger financial position for the Regional Rural Banks compared to previous years.
According to the official statement, the total business of all 28 RRBs has surpassed ₹13.5 lakh crore. This achievement reflects the growing trust and financial activities in the rural banking sector.
The review meeting was chaired by the Secretary of the Department of Financial Services, with participation from the Chairman of NABARD, the heads of all 28 RRBs, officials from the Department of Financial Services, sponsoring banks, the Reserve Bank of India, and the Small Industries Development Bank of India (SIDBI).
Currently, the 28 RRBs are providing services through 22,273 branches across 26 states and 3 union territories, reaching nearly 700 districts in the country. These banks play a crucial role in expanding banking services in rural and semi-urban areas.
There has also been a continuous improvement in the loan-to-deposit ratio of RRBs, which has reached an all-time high of 75.2% in the fiscal year 2025-26. This indicates that banks are effectively distributing deposits as loans, providing financial support to the rural economy.
The statement noted that RRBs are consistently achieving all targets and sub-targets related to priority sector lending. This has increased access to formal financial services for vulnerable, marginalized, and underbanked communities.
In terms of financial inclusion, RRBs have made significant contributions. During the fiscal year 2025-26, these banks opened over 5.498 million new accounts under the Pradhan Mantri Jan Dhan Yojana, helping to connect a large number of people to the banking system.
The Secretary of the Department of Financial Services emphasized the need for rural banks to rapidly adopt modern banking technology and digital services. He stressed that digital banking facilities should reach rural and remote areas to enable more people to benefit from formal banking services.
He praised the improved performance of RRBs in FY 2025-26 and urged all banks to maintain this momentum and further enhance their performance. Additionally, he encouraged sponsoring banks to assist RRBs, particularly in strengthening their information technology infrastructure.
The Secretary also motivated all RRB heads to increase loan distribution according to the needs of their respective regions and to develop new and innovative loan products wherever possible.
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