New Delhi: Regional Rural Bank (RRB) profits reached a record ₹10,176 crore in FY 2025-26, up from ₹6,820 crore a year earlier.
The Department of Financial Services reviewed the performance of all 28 RRBs at a meeting in Delhi on August 25. The review covered financial results, credit growth, financial inclusion and digital banking.
RRBs now operate 22,273 branches across 26 States and 3 Union Territories. Together, they cover about 700 districts and serve rural and underserved communities.
Their combined business also crossed ₹13.5 lakh crore during FY 2025-26. This figure exceeded the business of some individual public sector banks.
The banks also improved their asset quality during the year. Gross non-performing assets fell to an all-time low of 5.3%. Net non-performing assets also reached a record low of 2.1%.
RRBs continued to meet the targets and sub-targets under Priority Sector Lending. The banks maintained their focus on marginalised and underserved sections of society.
They also opened more than 54.98 lakh new Pradhan Mantri Jan Dhan Yojana accounts during FY 2025-26. The expansion strengthened access to formal banking in rural and underserved areas.
RRB profits rise as digital banking expands
The credit-deposit ratio of RRBs also reached an all-time high of 75.2% during the financial year. The improvement reflected stronger credit deployment across their areas of operation.
The Department of Financial Services asked RRBs to speed up the adoption of modern banking technology. It also called for wider digital delivery of financial services in rural and remote areas.
The department said digital banking should reach every section of society, including young people. It also stressed the need to improve customer experience and operational efficiency.
Furthermore, the Secretary of the Department of Financial Services asked RRBs to sustain their recent performance. He urged them to ensure that formal banking and government schemes reach people in the last mile.
The Secretary also asked sponsor banks to support their RRBs, especially in strengthening information technology infrastructure. He encouraged RRB chairpersons to increase credit flow to sectors important to their regions.
In addition, RRBs were encouraged to explore new and innovative lending opportunities wherever possible. The government said these efforts would help sustain growth and improve rural access to banking services.
The review meeting was attended by the NABARD Chairman, chairpersons of all 28 RRBs and officials from the Department of Financial Services, sponsor banks, RBI and SIDBI.
