The total business of 28 Regional Rural Banks (RRBs) has exceeded Rs 12 lakh crore in the first half of the current fiscal year. These banks operate through 22,158 branches spread across 26 states and three Union Territories, serving about 730 districts. The Finance Ministry revealed that the collective business of all 28 RRBs has surpassed the business levels of some individual Public Sector Banks (PSBs) in the same period.
The RRBs cater to 32.4 crore deposit accounts and 3.2 crore loan accounts, showcasing their significant outreach. As per official data, the net profit of RRBs has risen to Rs 7,720 crore by December 2025, marking an increase from the previous fiscal year’s consolidated net profit of Rs 6,820 crore. Notably, both Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets are showing a declining trend, indicating improved asset quality.
M. Nagaraju, Secretary of the Department of Financial Services (DFS), emphasized the need for RRBs to sustain and enhance their performance going forward. He highlighted key areas for improvement, including expanding social security schemes, diversifying loan portfolios, enhancing IT infrastructure, digitalizing financial services, and strengthening grievance redressal mechanisms, especially in rural areas. The DFS Secretary urged RRBs, NABARD, and sponsor banks to proactively prepare for upcoming challenges.
The Finance Ministry reported that RRBs are meeting all targets and sub-targets under Priority Sector Lending, underscoring their dedication to serving marginalized sections of society. Additionally, RRBs are actively promoting financial inclusion by opening over 45.68 lakh new Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts in the ongoing financial year.
