RRBs urged to maintain momentum on rural credit expansion

Regional Rural Banks (RRBs) have posted their strongest financial results on record, with net profit surging 49 per cent to Rs 10,176 crore in 2025-26 from Rs 6,820 crore in the previous fiscal year, the Department of Financial Services said on Tuesday.

Gross non-performing assets have fallen to an all-time low of 5.3 per cent, while net non-performing assets declined to 2.1 per cent, signalling improved asset quality across the sector. The finance ministry attributed the improved metrics to stronger operational discipline and better credit management practices among the 28 RRBs currently in operation.

DFS Secretary Sanjay Lohiya praised the sector's performance while emphasising the need for sustained growth in credit outreach. The RRB network, comprising 22,273 branches across 26 states and three Union Territories, serves approximately 700 districts and now manages total business of Rs 13.5 lakh crore—exceeding the business portfolios of several individual public sector banks.

RRBs continue to meet all prescribed targets and sub-targets, with officials highlighting the banks' critical role in channelling institutional credit to rural and semi-urban economies where conventional banking infrastructure remains limited. The improved financial health positions the sector to expand lending to agriculture, small enterprises, and other priority sectors requiring targeted support.