Regional Rural Banks clock all-time high net profit of Rs 10,176 crore in FY26

New Delhi, Aug 25 (IANS) The net profit of the Regional Rural Banks (RRBs) has increased to an all-time high of Rs 10,176 crore in financial year 2025-26, compared to a consolidated net profit of Rs 6,820 crore in FY 2024-25, according to an official statement released after a review meeting here on Tuesday.

Both Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets of the RRBs have declined to all-time lows of 5.3 per cent and 2.1 per cent, respectively, putting them on a stronger financial footing. The total business of all 28 RRBs has crossed Rs 13.5 lakh crore in the financial year 2025-26, the statement said.

The review meeting on the performance of the RRBs was held here under the chairmanship of the Secretary, Department of Financial Services. The meeting was attended by the Chairman, 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).

The Secretary, Department of Financial Services, noted the commendable performance of all RRBs in the Financial Year 2025-26 with 28 RRBs operating at present through 22,273 branches across 26 states and 3 Union Territories, covering about 700 districts. The RRBs have also been recording an increasing trend in their credit-deposit ratio, which reached an all-time high of 75.2 per cent in FY 2025-26, the statement said.

Besides, the RRBs continue to achieve all targets and sub-targets prescribed under Priority Sector Lending, reflecting their strong commitment to serving marginalised and underserved segments of society. They are also playing a vital role in advancing financial inclusion, having opened over 54.98 lakh new Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts during the Financial Year 2025-26.

The Secretary emphasised that the RRBs must accelerate the adoption of modern banking technology and the digital delivery of financial services to improve operational efficiency and customer experience, while expanding access to banking services in rural and far-flung areas and ensuring that the benefits of digital banking reach every section of society, including the youth of the country.

He appreciated the overall improvement in the performance of the RRBs during FY 2025-26 and called upon all the RRBs to sustain the momentum and further improve their performance so that the benefits of formal banking and government-sponsored schemes reach the last mile. He urged all sponsor banks to handhold their RRBs in their growth journey, particularly in strengthening their IT infrastructure. He also encouraged the Chairpersons of all RRBs to take personal initiative in boosting bank credit flow to sectors specific to their areas of jurisdiction and, wherever possible, introduce new and innovative avenues of lending, the statement added.

–IANS

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