Regional Rural Banks Achieve Record Performance in FY 2025-26
The Ministry of Finance reported exceptional financial performance by Regional Rural Banks (RRBs) for the financial year 2025-26, following a review meeting chaired by the Secretary of the Department of Financial Services. The meeting included participation from the Chairman of NABARD, Chairpersons of all 28 RRBs, officials from the Department of Financial Services, Sponsor Banks, the Reserve Bank of India, and the Small Industries Development Bank of India (SIDBI).
RRBs currently operate through 22,273 branches across 26 States and 3 Union Territories, covering approximately 700 districts. Their total business crossed ₹13.5 lakh crore in FY 2025-26, surpassing the business level of some individual Public Sector Banks. The net profit reached an all-time high of ₹10,176 crore, significantly increasing from the consolidated net profit of ₹6,820 crore in FY 2024-25. Asset quality improved substantially with Gross Non-Performing Assets declining to 5.3% and Net Non-Performing Assets reaching 2.1%, both representing all-time lows.
RRBs successfully achieved all targets and sub-targets under Priority Sector Lending requirements, demonstrating their commitment to serving marginalized and underserved segments. They opened over 54.98 lakh new Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts during the year, significantly contributing to financial inclusion efforts. The Credit-Deposit Ratio reached an all-time high of 75.2% in FY 2025-26, indicating improved lending efficiency.
The Secretary emphasized the need for RRBs to accelerate adoption of modern banking technology and digital delivery of financial services to enhance operational efficiency and customer experience. He called for expanding access to banking services in rural and remote areas while ensuring digital banking benefits reach every section of society, including youth. Sponsor Banks were urged to provide handholding support to RRBs, particularly in strengthening IT infrastructure, and RRB Chairpersons were encouraged to take personal initiative in boosting credit flow to sector-specific areas within their jurisdictions and introducing innovative lending avenues.