RRBs FY26: Net Profit Hits Record Rs 10,176 Crore as Business Crosses Rs 13.5 Lakh Crore
RRBs FY26 performance improves sharply, with net profit reaching a record Rs 10,176 crore, gross NPA falling to 5.3 percent and total business crossing Rs 13.5 lakh crore.
Regional Rural Banks (RRBs) recorded a strong financial performance in RRBs FY26, with consolidated net profit reaching an all-time high of Rs 10,176 crore. This compares with Rs 6,820 crore in the previous financial year.
The strong performance reflects improved profitability, asset quality and credit deployment across the RRB network.
RRBs FY26 Business Crosses Rs 13.5 Lakh Crore
The total business of the 28 RRBs crossed Rs 13.5 lakh crore during FY26. The Department of Financial Services (DFS) said the business level exceeded that of some individual public sector banks.
RRBs also recorded a stronger credit-deposit ratio. It rose to an all-time high of 75.2 percent during FY26. The rise indicates greater deployment of deposits as credit across their operating regions.
RRBs FY26 Asset Quality Shows Improvement
Asset quality also improved during the year. Gross non-performing assets (GNPA) declined to an all-time low of 5.3 percent.
Net NPA also fell to 2.1 percent in FY26. The decline in bad loans accompanied the improvement in profitability.
The 28 RRBs currently operate through 22,273 branches across 26 states and three Union Territories. Their network covers around 700 districts and provides banking services to rural and underserved communities.
RRBs Strengthen Financial Inclusion
RRBs met all prescribed targets and sub-targets under Priority Sector Lending during FY26.
The banks also expanded financial inclusion. They opened more than 54.98 lakh new Pradhan Mantri Jan Dhan Yojana accounts during the year.
The figures highlight the continued role of RRBs in expanding formal banking access across rural and underserved regions.
Focus on Digital Banking and Technology
The DFS Secretary has asked RRBs to accelerate the adoption of modern banking technology and digital financial services.
The focus is on improving operational efficiency and customer experience. RRBs have also been asked to expand digital banking access in rural and remote areas.
The Secretary stressed the need to ensure that technology-enabled services reach underserved sections, including young customers.
Sponsor banks were also urged to provide greater support to RRBs, particularly in strengthening IT infrastructure.
RRBs Asked to Expand Credit Flow
Chairpersons of RRBs were asked to take greater initiative in expanding credit to sectors relevant to their respective regions.
They were also encouraged to explore innovative lending opportunities based on local economic needs.
The government has called on RRBs to sustain the gains recorded in FY26. It also wants the banks to strengthen their role in delivering formal banking services and government-sponsored schemes to the last mile.
Source: PSU Watch
