Regional Rural Banks post ₹10,176 crore
Key Highlights
- Net profit of India’s 28 Regional Rural Banks reached a record ₹10,176 crore in FY 2025-26.
- Profit increased from ₹6,820 crore recorded in FY 2024-25.
- Combined business of RRBs crossed ₹13.5 lakh crore during the financial year.
- Gross NPA fell to an all-time low of 5.3%, while Net NPA declined to 2.1%.
- RRBs opened more than 54.98 lakh new PMJDY accounts during FY26.
- Credit-Deposit Ratio reached a record 75.2%.
- The 28 RRBs operate 22,273 branches across 26 states and three Union Territories.
- The government has called for faster adoption of digital banking and stronger IT infrastructure.
New Delhi, August 25: India’s Regional Rural Banks (RRBs) delivered their strongest-ever financial performance in FY 2025-26, with combined net profit rising to a record ₹10,176 crore and total business crossing ₹13.5 lakh crore, according to the Department of Financial Services.
The performance was reviewed at a meeting in Delhi chaired by the Secretary, Department of Financial Services. Representatives from all 28 RRBs, NABARD, sponsor banks, the Reserve Bank of India, SIDBI and government officials participated in the meeting.
Profitability and Asset Quality Improve
RRBs reported a significant improvement in profitability during the financial year. Their consolidated net profit increased from ₹6,820 crore in FY 2024-25 to ₹10,176 crore in FY 2025-26, representing growth of about 49%.
The combined business of the 28 banks also crossed ₹13.5 lakh crore. According to the government, this level of business is now higher than that of some individual public sector banks.
Asset quality strengthened alongside profitability. Gross Non-Performing Assets declined to an all-time low of 5.3%, while Net NPAs fell to a record low of 2.1%. The Credit-Deposit Ratio also reached an all-time high of 75.2%, indicating an increasing deployment of deposits towards lending.
Financial Inclusion Remains Key Focus
RRBs continued to play an important role in expanding formal banking services across rural and underserved areas. During FY 2025-26, the banks opened more than 54.98 lakh new accounts under the Pradhan Mantri Jan Dhan Yojana.
The banks also achieved the prescribed targets and sub-targets under Priority Sector Lending, supporting their role in providing credit to agriculture and other underserved sections of the economy.
Currently, 28 RRBs operate through a network of 22,273 branches covering around 700 districts across 26 states and three Union Territories.
Digital Banking Push Ahead
The Department of Financial Services has now called on RRBs to accelerate the adoption of modern banking technology and strengthen digital delivery.
The government wants digital banking services to become more accessible in rural and far-flung regions while improving customer experience and operational efficiency. Particular emphasis has been placed on ensuring greater digital access for young customers and other sections of society.
Sponsor banks have also been asked to support RRBs in strengthening their IT infrastructure. RRB chairpersons were encouraged to expand credit in sectors relevant to their respective regions and explore innovative lending opportunities.
The government said the focus ahead will be on sustaining the improvement in RRB performance while ensuring formal banking services and government-backed financial schemes reach customers at the last mile.
