New Delhi: India’s 28 Regional Rural Banks (RRBs) posted an all-time high net profit of ₹10,176 crore in FY 2025-26, up from ₹6,820 crore in the previous financial year, while their combined business crossed ₹13.5 lakh crore, the Department of Financial Services said.
The performance was reviewed at a meeting in New Delhi chaired by the Secretary, Department of Financial Services, and attended by the Chairman of NABARD, chairpersons of all 28 RRBs, officials from sponsor banks, the Reserve Bank of India and the Small Industries Development Bank of India.
The 28 RRBs currently operate through 22,273 branches across 26 states and three Union Territories, covering about 700 districts. Their combined business in FY 2025-26 surpassed the business level of a few individual public sector banks, according to the department.
Asset quality also improved during the year, with gross non-performing assets falling to an all-time low of 5.3 per cent and net non-performing assets declining to an all-time low of 2.1 per cent.
RRBs opened more than 54.98 lakh new Pradhan Mantri Jan Dhan Yojana accounts during FY 2025-26. The banks also met all targets and sub-targets prescribed under Priority Sector Lending, the department said.
The Credit-Deposit Ratio of RRBs also reached an all-time high of 75.2 per cent in FY 2025-26.
The Department of Financial Services Secretary asked RRBs to accelerate the adoption of modern banking technology and expand digital financial services, particularly in rural and far-flung areas. Sponsor banks were also asked to support RRBs in strengthening their IT infrastructure.
RRB chairpersons were encouraged to increase the flow of bank credit to sectors relevant to their respective areas and explore new and innovative lending opportunities while maintaining the improvement in financial performance.
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