Regional Rural Banks Achieve Record Profits in 2025-26
A review meeting on the performance of Regional Rural Banks (RRBs) took place today in Delhi, chaired by the Secretary of the Department of Financial Services. Attended by various dignitaries including the Chairman of NABARD and Chairpersons from all 28 RRBs, the meeting focused on the banks’ impressive achievements in the Financial Year 2025-26.
The Secretary commended the notable progress made by RRBs, highlighting their extensive reach across 26 states and 3 Union Territories, encompassing over 22,273 branches and serving nearly 700 districts. The total business volume of these 28 RRBs has soared past ₹13.5 lakh crore, indicating a performance that surpasses some individual Public Sector Banks (PSBs) for the fiscal year.
In a groundbreaking achievement, RRBs recorded a net profit of ₹10,176 crore for FY 2025-26, a significant increase from the ₹6,820 crore reported in FY 2024-25. Additionally, both Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets hit unprecedented lows of 5.3% and 2.1%, respectively, marking a positive trend in the banks’ financial health.
Commitment to Financial Inclusion
RRBs continue to excel in meeting their targets under Priority Sector Lending, showcasing their commitment to reaching marginalized communities. Notably, they opened more than 54.98 lakh new Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts in the past fiscal year. The banks also achieved a heightened Credit-Deposit Ratio, reaching an all-time high of 75.2% in FY 2025-26, underscoring their effective financial management.
Focus on Technology and Innovation
The Secretary emphasized the importance of modern banking technologies and digital financial services, urging RRBs to improve operational efficiency and enhance customer experiences. He stressed the necessity for expanding banking services to rural and remote areas, ensuring that digital banking benefits all sectors of society, particularly the youth.
Acknowledging the overall improvement in RRBs, the Secretary encouraged sustained momentum for further advancements. He called upon each RRB to enhance their performance, ensuring that formal banking services and government-sponsored programs effectively reach underserved populations. Sponsor Banks were urged to support RRBs in strengthening their IT infrastructure, and RRB Chairpersons were motivated to innovate in lending practices tailored to their local economies.
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