Regional Rural Banks Record Highest-Ever Profit in FY26

The government has been conducting national and regional review meetings to assess the performance of Regional Rural Banks over the past four financial years.

Regional Rural Banks (RRBs) have reported their strongest financial performance to date, posting a record net profit of ₹10,177 crore in the 2025-26 financial year. The achievement comes as the Government of India continues to closely monitor the performance of RRBs and strengthen their role in expanding financial inclusion across rural and remote parts of the country.

The Ministry of Finance said regular review meetings and policy interventions have helped improve the financial health of RRBs while encouraging greater lending, technology adoption and support for rural businesses.

Regular Reviews Drive Better Performance

The government has been conducting national and regional review meetings to assess the performance of Regional Rural Banks over the past four financial years.

These meetings, chaired by the Finance Minister at both national and regional levels, have been held across the country, including New Delhi, Agartala, Chennai, Udaipur, Itanagar, Bengaluru, Patna and Ballari. In addition, the Department of Financial Services (DFS) regularly meets with RRBs and sponsor banks to review progress and address operational challenges.

The discussions focus on financial performance, technology upgrades, expanding lending to micro, small and medium enterprises (MSMEs), diversifying loan portfolios towards agriculture, allied sectors and retail lending, and strengthening financial inclusion in underserved regions.

Strong Growth Across Key Financial Indicators

According to data from NABARD, Regional Rural Banks have shown consistent improvement across several financial indicators over the past three years.

Total deposits increased from ₹6.59 lakh crore in FY24 to ₹7.69 lakh crore in FY26, while outstanding loans rose from ₹4.71 lakh crore to ₹5.78 lakh crore during the same period.

The Credit-Deposit Ratio improved from 71.4% to 75.2%, reflecting stronger lending activity. Asset quality also remained stable, with Gross Non-Performing Assets (GNPA) declining from 6.1% in FY24 to 5.3% in FY26.

RRBs also strengthened their financial position, with net worth increasing to ₹74,086 crore and the Capital to Risk Weighted Assets Ratio (CRAR) improving to 15%, indicating stronger capital adequacy.

Expanding Financial Inclusion

The government said Regional Rural Banks continue to play an important role in extending banking services to rural communities.

Progress under flagship financial inclusion programmes is regularly monitored by the Department of Financial Services. These include the Pradhan Mantri Jan-Dhan Yojana (PMJDY), Pradhan Mantri MUDRA Yojana (PMMY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY).

These schemes are designed to improve access to banking, insurance, credit and pension services for people living in rural and remote areas.

Government Continues Oversight

The Ministry of Finance said the government will continue reviewing the financial health and operational performance of Regional Rural Banks at both national and regional levels to ensure they remain financially strong while supporting rural economic development.

The information was provided by Minister of State for Finance Pankaj Chaudhary in a written reply in the Rajya Sabha, highlighting the government's continued focus on strengthening rural banking and promoting inclusive economic growth.