New Delhi: Regional Rural Banks (RRBs) recorded a consolidated net profit of ₹10,176 crore in financial year 2025-26, marking an all-time high, while their combined business crossed ₹13.5 lakh crore, according to the Ministry of Finance.
The performance was reviewed at a meeting held in New Delhi under the chairmanship of the Secretary, Department of Financial Services (DFS). The meeting was attended by the Chairman of NABARD, chairpersons of all 28 RRBs, officials from DFS, sponsor banks, the Reserve Bank of India and SIDBI.
RRBs’ Net Profit Rises Sharply in FY26
The consolidated net profit of RRBs increased significantly from ₹6,820 crore in FY25 to ₹10,176 crore in FY26.
The improvement highlights the strengthening financial performance of the regional banking network, which plays an important role in extending formal banking services to rural and underserved communities.
At present, 28 RRBs operate through 22,273 branches across 26 states and three Union Territories, covering around 700 districts.
Total RRB Business Crosses ₹13.5 Lakh Crore
The combined business of the 28 RRBs crossed ₹13.5 lakh crore in FY26.
According to the Ministry of Finance, this business level is higher than that of some individual Public Sector Banks, underlining the growing scale of RRB operations in India’s banking sector.
The RRB network continues to focus on providing banking and credit services to rural areas and supporting sectors such as agriculture, small businesses and other priority segments.
Asset Quality Improves With GNPA and NNPA at Record Lows
RRBs also recorded a significant improvement in asset quality during FY26.
- Gross NPA (GNPA): 5.3%
- Net NPA (NNPA): 2.1%
Both ratios reached their respective all-time lows, reflecting improvement in the overall financial health of the RRB sector.
RRBs also continued to achieve the prescribed targets and sub-targets under Priority Sector Lending (PSL), reinforcing their role in serving marginalised and underserved sections of society.
RRBs Open 54.98 Lakh New PMJDY Accounts
Financial inclusion remained another key area of RRB performance.
During FY26, RRBs opened more than 54.98 lakh new accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
The expansion of PMJDY accounts is expected to further strengthen access to formal banking services in rural and underserved areas and improve the reach of government-sponsored financial schemes.
Credit-Deposit Ratio Reaches Record 75.2%
The combined Credit-Deposit (CD) Ratio of RRBs reached an all-time high of 75.2% in FY26.
The increase indicates stronger deployment of deposits into credit and reflects the growing role of RRBs in meeting the financing requirements of their respective regions.
The government has encouraged RRB chairpersons to focus on increasing credit flow to sectors specific to their areas of operation and explore innovative lending opportunities wherever possible.
Government Pushes Digital Banking Expansion
The DFS Secretary stressed the need for RRBs to accelerate the adoption of modern banking technology and digital delivery of financial services.
The focus is aimed at improving:
- Operational efficiency
- Customer experience
- Access to banking services in rural and remote areas
- Digital financial inclusion
- Availability of banking services for the country’s youth
The government emphasised that the benefits of digital banking should reach every section of society, including people living in far-flung areas.
Sponsor Banks Asked to Strengthen RRB IT Infrastructure
The Secretary, DFS, appreciated the overall improvement in RRB performance and called on the banks to sustain the momentum.
Sponsor banks were urged to provide greater support to RRBs, particularly in strengthening their IT infrastructure and digital capabilities.
RRBs were also encouraged to improve credit delivery and develop new and innovative lending products suited to the needs of local economies.
Focus on Last-Mile Banking and Rural Credit
The government has called for continued efforts to ensure that the benefits of formal banking and government-sponsored schemes reach the last mile.
With their extensive branch network across rural India, RRBs remain an important channel for financial inclusion, priority sector lending and credit delivery to underserved communities.
The strong FY26 performance, combined with the push for digital transformation and greater credit flow, is expected to further strengthen the role of RRBs in India’s rural financial ecosystem.
