Regional Rural Banks Achieve Record Financial Performance in FY 2025-26
Regional Rural Banks (RRBs) posted their highest-ever consolidated net profit of ₹10,177 crore during FY 2025-26, demonstrating significant improvement from ₹7,571 crore in FY 2023-24 and ₹6,820 crore in FY 2024-25. The financial health of RRBs has shown consistent improvement across key parameters over the past three years.
Comprehensive Financial Parameter Improvements
Total deposits grew steadily from ₹6,59,815 crore in FY 2023-24 to ₹7,13,800 crore in FY 2024-25, reaching ₹7,68,621 crore in FY 2025-26. Loans outstanding increased from ₹4,71,384 crore to ₹5,24,163 crore and further to ₹5,78,349 crore over the same period. The Credit-Deposit Ratio improved consistently from 71.4% to 73.4% and then to 75.2% in FY 2025-26.
Asset quality showed marked improvement with Gross Non-Performing Assets (GNPA) declining from 6.1% in FY 2023-24 to 5.4% in FY 2024-25 and further to 5.3% in FY 2025-26. Net Non-Performing Assets (NNPA) decreased from 2.4% to 2.0% before a slight increase to 2.1% in the latest fiscal year.
Capital strength improved significantly with Net Worth growing from ₹56,780 crore to ₹63,927 crore and reaching ₹74,086 crore in FY 2025-26. The Capital to Risk Weighted Assets Ratio (CRAR) strengthened from 14.2% to 14.4% and further to 15.0% over the three-year period.
Government Monitoring and Review Framework
The Government of India regularly reviews RRB performance at national and regional levels, with ten review meetings held under the Finance Minister's chairpersonship between July 2022 and October 2025 across various locations including New Delhi, Agartala, Chennai, Udaipur, Itanagar, Bengaluru, Patna, and Ballari. The Department of Financial Services conducts periodic follow-up meetings with RRBs and sponsor banks, focusing on performance review of financial parameters, technology upgradation, thrust on Micro Small and Medium Enterprise portfolio, loan diversification towards Agri-allied, MSME and Retail sectors, and expansion of financial inclusion in rural and remote areas.
Financial Inclusion Initiatives
The government regularly monitors RRBs' progress in implementing key financial inclusion schemes including 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). The DFS sets targets for these schemes and periodically monitors their implementation to deepen financial inclusion in rural and remote areas.
This information was officially provided by Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in Rajya Sabha on July 28, 2026, with data sourced from NABARD.