New Delhi, July 28: India’s Regional Rural Banks (RRBs) have reported a record consolidated net profit of ₹10,177 crores for the fiscal year 2025-26. The central government announced this achievement in Parliament on Tuesday, highlighting significant improvements in the financial performance of RRBs over recent years.
In a written response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated that RRBs have consistently excelled in key financial metrics, including the Capital to Risk Weighted Assets Ratio (CRAR), deposits, loan distribution, Non-Performing Assets (NPA), and the Credit-Deposit (CD) ratio.
According to government data, the gross NPA of RRBs has decreased to 5.4% in FY 2025-26, down from 6.1% in FY 2023-24. Additionally, the net worth of these banks has steadily increased, rising from ₹63,927 crores in FY 2023-24 and ₹56,780 crores previously, to ₹74,086 crores in FY 2025-26.
Minister Chaudhary further explained that the central government regularly reviews the performance and financial status of RRBs at both national and regional levels. The Financial Services Department of the Finance Ministry holds meetings with RRBs and their sponsoring banks to assess their financial performance and discuss technical upgrades, loan expansion in the Micro, Small, and Medium Enterprises (MSME) sector, agriculture and related fields, as well as diversification of retail loan portfolios.
Moreover, discussions also focus on strengthening financial inclusion in rural and remote areas.
The minister added that the government continuously monitors the progress of RRBs in promoting financial inclusion in rural and distant regions. Targets for initiatives such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Mudra Yojana (PMMY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Atal Pension Yojana (APY) are set by the Financial Services Department and are reviewed periodically.
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