Lok Sabha Question No. 111 (UNSTARRED), answered on 2025-12-01
Subject: Regional Rural Banks
Ministry: FINANCE
Asked by: Shri Chavda Vinod Lakhamshi

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA UNSTARRED QUESTION NO.111

ANSWERED ON MONDAY, DECEMBER 01, 2025/AGRAHAYANA 10, 1947 (SAKA)

## Regional Rural Banks

## † 111. SHRI CHAVDA VINOD LAKHAMSHI:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has reviewed the financial performance of Regional Rural Banks (RRBs) in the country;
- (b) if so, the details of the agenda fixed and the outcomes thereof;
- (c) whether the Government also reviewed the progress made by RRBs in strengthening financial inclusion in rural and remote areas of the country; and
- (d) if so, the details of improvement in the financial position of RRBs during the last five years?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) to (d): Government is regularly reviewing the financial performance of Regional Rural Banks (RRBs) at national and regional levels. Several reviews have been held at the level of NABARD and  at  Department  level.  Further  following  reviews  of  RRBs  have  been  held  under  the Chairmanship of Finance Minister in last four financial years as per the details below:

|   S.No | National/Regional    | Date and Place          |
|--------|----------------------|-------------------------|
|      1 | National level       | 07.07.2022 at New Delhi |
|      2 | North-Eastern RRBs   | 21.07.2023 at Agartala  |
|      3 | Southern RRBs        | 04.08.2023 at Chennai   |
|      4 | Northern RRBs        | 30.08.2023 at New Delhi |
|      5 | National level       | 19.08.2024 at New Delhi |
|      6 | Western-Central RRBs | 22.08.2024 at Udaipur   |
|      7 | North-Eastern RRBs   | 30.09.2024 at Itanagar  |
|      8 | Southern RRBs        | 09.11.2024 at Bengaluru |

|   9. | Eastern RRBs            | 29.11.2024 at Patna   |
|------|-------------------------|-----------------------|
|   10 | Karnataka Grameena Bank | 16.10.2025 at Ballari |

Further, as a follow-up, Department of Financial Services has conducted periodic and regular meeting  with  RRBs  and  sponsor  banks  at  various  level.  The  agenda  items  for  the  review meetings, inter-alia , include:

- (i) Review of the performance of RRBs on Financial Parameters and technology upgradation.
- (ii) Thrust on Micro Small and Medium Enterprise (MSME) portfolio.
- (iii) Importance on loan diversification towards Agri-allied, MSME and Retail Sectors.

Financial health of RRBs has improved in the recent years as they have posted highest ever consolidated net profit of Rs. 7,571 Crore during FY 2023-24, followed by second highest net profit of Rs. 6,825 Crore during FY 2024-25. This decline was due to implementation of pension scheme  with  retrospective  effect  from  01  November  1993,  and  payments  towards  computer increment  liability.  Also,  the  RRBs  have  shown  consistent  improvement  in  key  financial parameters  like  Capital  to  Risk  Weighted  Assets  Ratio  (CRAR),  Deposits,  Advances,  NonPerforming Asset (NPA), Credit-Deposit Ratio (CD ratio) etc. Performance of RRBs on key financial  parameters  in  past  five  financial  years  and  first  half  of  current  financial  year  is  at Annexure.

Government has also reviewed the progress made by RRBs in deepening financial inclusion in rural and remote areas by reviewing performance on various financial inclusion schemes like Pradhan  Mantri  Jan-Dhan  Yojana  (PMJDY),  Pradhan  Mantri  MUDRA  Yojana  (PMMY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY) etc.

********

## STATEMENT  REFERRED  TO  IN  PART  (a)  TO  (d)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 111 ON 'REGIONAL RURAL BANKS' FOR ANSWER ON 01.12.2025

## Performance of RRBs on Key Financial Parameters

|   Sr. No. | Key Financial Parameters                         | FY 2020-21   | FY 2021-22   | FY 2022-23   | FY 2023-24   | FY 2024-25   | As on 30 September 2025 (Provisional)   |
|-----------|--------------------------------------------------|--------------|--------------|--------------|--------------|--------------|-----------------------------------------|
|         1 | Total Deposits (In Rs. Crore)                    | 5,25,226     | 5,62,538     | 6,08,509     | 6,59,815     | 7,13,800     | 7,20,000                                |
|         2 | Loans Outstanding (In Rs. Crore)                 | 3,34,171     | 3,62,838     | 4,14,368     | 4,71,384     | 5,26,763     | 5,50,509                                |
|         3 | Credit-Deposit Ratio (CD ratio) (%)              | 63.6         | 64.5         | 68.1         | 71.4         | 73.8         | 76.5                                    |
|         4 | Gross Non- Performing Asset (GNPA) (%)           | 9.4          | 9.1          | 7.2          | 6.1          | 5.4          | 5.8                                     |
|         5 | Net Non-Performing Asset (NNPA) (%)              | 4.8          | 4.7          | 3.2          | 2.4          | 2.0          | 2.3                                     |
|         6 | Net Profit (In Rs. Crore)                        | 1,685        | 3,219        | 4,974        | 7,571        | 6,825        | 6,274                                   |
|         7 | Net Worth (In Rs. Crore)                         | 30,476       | 40,177       | 47,451       | 56,780       | 63,927       | 69,184                                  |
|         8 | Capital to Risk Weighted Assets Ratio (CRAR) (%) | 10.2         | 12.7         | 13.4         | 14.2         | 14.4         | 14.8                                    |