Lok Sabha Question No. 4978 (UNSTARRED), answered on 2026-03-23
Subject: Review of Performance of Regional Rural Banks (RRBs)
Ministry: FINANCE
Asked by: Shri Jagdambika Pal, Shri Anurag Singh Thakur, Shri Captain Brijesh Chowta

## GOVERNMENT OF INDIA MINISTRY OF FINACE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 4978

ANSWERED ON MONDAY, MARCH 23, 2026/CHAITRA 02, 1948 (SAKA)

Review of Performance of Regional Rural Banks (RRBs)

4978. Shri Captain Brijesh Chowta:

Shri Anurag Singh Thakur:

Shri Jagdambika Pal:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has undertaken a review of the performance and financial health of Regional Rural Banks (RRBs) across the country in recent years, if so, the details thereof;
- (b) whether it is a fact that RRBs have shown improvement in key financial indicators, including profitability,  reduction  in  NPAs  and  expansion  of  business  in  recent  years,  if  so,  the  details thereof;
- (c) the details of the total number of RRBs, their branch network including number of branches, State-wise and district-wise particularly in Himachal Pradesh and Karnataka, including Dakshina Kannada along with total business and net profit recorded during the last three years, bank-wise;
- (d) the measures taken by the Government to strengthen RRBs through consolidation, capital infusion, digital banking infrastructure and improved governance; and
- (e) the steps taken to further enhance the role of RRBs in promoting financial inclusion, priority sector lending and rural credit access across the country?

## ANSWER

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

- (a)  &  (b):  Government  of  India  regularly  reviews  the  performance  and  financial  health  of Regional Rural Banks (RRBs) at national and regional levels. The following reviews of RRBs have been held under the Chairpersonship of Finance Minister in last four financial years:

|   Sr. No | National/Regional level   | 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 (DFS) conducts periodic and regular meetings with RRBs and sponsor banks at various levels.

Financial  health  of  RRBs  has  improved  in  the  recent  years.  RRBs  posted  the  highest  ever consolidated net profit of Rs. 7,571 Crore during FY 2023-24, followed by second highest net profit of Rs. 6,820 Crore during FY 2024-25. In nine months (April-Dec) of FY 2025-26, RRBs have posted consolidated net profit of Rs. 7,160 Crore (Provisional) .  RRBs have also shown consistent improvement in key financial parameters like Capital to Risk Asset Ratio (CRAR), deposits,  advances,  Non-Performing  Asset  (NPA),  Credit-Deposit  Ratio  (CD  ratio)  etc. Performance of RRBs on key financial parameters in past three years is at Annexure I.

- (c) As on 31.12.2025, there are 28 RRBs operating in 26 States and 3 Union Territories having 22,207 branches. RRB wise detail of number of branches is at Annexure II .

Himachal Pradesh  Gramin  Bank  (HPGB) is  operating  in  the  state  of  Himachal  Pradesh  and Karnataka Grameena Bank (KGB) is operating in the state of Karnataka. Details of the district wise branch network for the RRBs in Himachal Pradesh and Karnataka as on 31.12.2025 is given in Annexure III and Annexure IV respectively.

Total Business and Net Profit of the RRBs in Himachal Pradesh and Karnataka during the last three Financial Years (FY) are as follows:

| HPGB    | HPGB           | HPGB           | HPGB       |
|---------|----------------|----------------|------------|
| Sr. No. | Financial Year | Total Business | Net Profit |
| 1       | 2022-23        | 11,112         | 2.17       |
| 2       | 2023-24        | 12,327         | 6.89       |
| 3       | 2024-25        | 13,616         | 34.71      |

Source: NABARD

In FY 2025-26 (April-Dec), the total business and net profit of HPGB is Rs. 14,492 Crore and Rs. 26.07 Crore (Provisional) respectively.

| Karnataka Gramin Bank (erstwhile) (In Rs. Crore)   | Karnataka Gramin Bank (erstwhile) (In Rs. Crore)   | Karnataka Gramin Bank (erstwhile) (In Rs. Crore)   | Karnataka Gramin Bank (erstwhile) (In Rs. Crore)   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| Sr. No.                                            | Financial Year                                     | Total Business                                     | Net Profit                                         |
| 1                                                  | 2022-23                                            | 61,202                                             | 7.56                                               |
| 2                                                  | 2023-24                                            | 62,422                                             | -174.27                                            |
| 3                                                  | 2024-25                                            | 63,533                                             | -791.31                                            |

| Karnataka Vikas Grameena Bank (erstwhile) (In Rs. Crore)   | Karnataka Vikas Grameena Bank (erstwhile) (In Rs. Crore)   | Karnataka Vikas Grameena Bank (erstwhile) (In Rs. Crore)   | Karnataka Vikas Grameena Bank (erstwhile) (In Rs. Crore)   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| Sr. No.                                                    | Financial Year                                             | Total Business                                             | Net Profit                                                 |
| 1                                                          | 2022-23                                                    | 32,450                                                     | 40.25                                                      |
| 2                                                          | 2023-24                                                    | 35,383                                                     | 104.17                                                     |
| 3                                                          | 2024-25                                                    | 37,912                                                     | 126.04                                                     |

Source: NABARD

Both the above erstwhile RRBs of Karnataka amalgamated on 01.05.2025 and the new entity is now Karnataka Grameena Bank. In FY 2025-26 (April-Dec), the total business and net profit of KGB is Rs. 1,02,063 Crore and Rs. 32 Crore (Provisional) respectively.

- (d) The Government has implemented following strategy to strengthen RRBs :

## 1) Phased Implementation of Amalgamation of RRBs:

In order to improve operational viability of RRBs and to take advantage of economies of scale, Government of India initiated phase wise structural consolidation of RRBs in FY 2005-06. In the first three phases (2005-2021), the number of RRBs were brought down from 196 to 43 by March 2021.

In  the  fourth  phase  of  amalgamation,  guided  by  the  principle  of  'One  State-One  RRB',  the number of RRBs were further reduced from 43 to 28 on 01.05.2025.

- (2)  Recapitalisation  of  RRBs :  In  order  to  improve  Capital  to  Risk  weighted  Assets  Ratio (CRAR)  of  RRBs,  the Government  of  India approved  recapitalization  of  Rs.10,890  crore (including Government of India share of Rs.5,445 crore) which was infused in RRBs from the FY 2021-22 to FY 2024-25.
- 3)  Implementation  of  Viability  Plan  Framework: Consequent  upon  the  sanction  of recapitalisation assistance to RRBs, all RRBs rolled out a 3-year Board approved Viability Plan with SMART (Specific, Measurable, Achievable, Relevant, Time-bound) metrics from FY 202223 to FY 2024-25 with a well-defined implementation mechanism aimed at achieving sustained viability through credit expansion, business diversification, asset quality improvement, cost rationalization, technology adoption and improvement in corporate governance.
- 4) Digital Banking Infrastructure: All RRBs have implemented Core Banking Solution (CBS) and  most  of  them  provide  digital  services  like  Mobile  Banking,  Internet  Banking,  UPI  and Contactless Debit card to their customers.
- 5) Improved  Governance: For  better  governance,  Department  of  Financial  Services  has appointed Government Nominee Directors in the board of all RRBs. Further, Sponsor Banks are advised to hand hold their respective RRBs for better corporate governance.
5. (e) RRBs were established as an alternate financial institution for credit dispensation to small and marginal farmers, agricultural labourers, socio-economically weaker section of population for  development  of  agriculture,  trade,  commerce,  small  scale  industry  and  other  productive activities in rural areas. RRBs have consistently met, and often exceeded, their Priority Sector

Lending (PSL) targets and sub-targets over the years. Nearly, 92% branches of RRBs are in rural/semi-urban areas. These branches are largely meeting credit requirements in these areas.

Government regularly reviews the progress made by RRBs in deepening financial inclusion in rural and remote areas. The targets for 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) are set by DFS and periodically monitored.

Further, RRBs have participated in Gram Panchayat (GP) level Saturation Campaign of DFS from 01.07.2025 to 31.10.2025 for achieving comprehensive financial inclusion.

******

ANNEXURE  REFERRED  TO  IN  PART  (a)  &  (b)  OF  LOK  SABHA  UNSTARRED QUESTION NO 4978 ON 'REVIEW OF PERFORMANCE OF REGIONAL RURAL BANKS (RRBS)' FOR ANSWER ON 23.03.2026

Performance of RRBs on Key Financial Parameters

|   Sr. No. | Key Financial Parameters                         | FY 2022-23   | FY 2023-24   | FY 2024-25   | As on 31 December 2025 (Provisional)   |
|-----------|--------------------------------------------------|--------------|--------------|--------------|----------------------------------------|
|         1 | Total Deposits (In Rs. Crore)                    | 6,08,509     | 6,59,815     | 7,13,800     | 7,33,959                               |
|         2 | Loans Outstanding (In Rs. Crore)                 | 4,14,368     | 4,71,384     | 5,26,763     | 5,65,614                               |
|         3 | Credit-Deposit Ratio (CD ratio) (%)              | 68.1         | 71.4         | 73.8         | 77.0                                   |
|         4 | Gross Non- Performing Asset (GNPA) (%)           | 7.2          | 6.1          | 5.4          | 5.6                                    |
|         5 | Net Non-Performing Asset (NNPA) (%)              | 3.2          | 2.4          | 2.0          | 2.2                                    |
|         6 | Net Profit (In Rs. Crore)                        | 4,974        | 7,571        | 6,820        | 7,160                                  |
|         7 | Net Worth (In Rs. Crore)                         | 47,451       | 56,780       | 63,927       | 71,712                                 |
|         8 | Capital to Risk Weighted Assets Ratio (CRAR) (%) | 13.4         | 14.2         | 14.4         | 15.0                                   |

Source: RRBs

ANNEXURE REFERRED TO IN PART (c) OF LOK SABHA UNSTARRED QUESTION NO.  4978  ON  'REVIEW  OF  PERFORMANCE  OF  REGIONAL  RURAL  BANKS (RRBs)' FOR ANSWER ON 23.03.2026

| Sr. No.   | Name of the RRB                | No of Branches (As on 31.12.2025)   |
|-----------|--------------------------------|-------------------------------------|
| 1         | Andhra Pradesh Grameena Bank   | 1,351                               |
| 2         | Arunachal Pradesh Rural Bank   | 38                                  |
| 3         | Assam Gramin Bank              | 464                                 |
| 4         | Bihar Gramin Bank              | 2,101                               |
| 5         | Chhattisgarh Gramin Bank       | 627                                 |
| 6         | Gujarat Gramin Bank            | 745                                 |
| 7         | Haryana Gramin Bank            | 693                                 |
| 8         | Himachal Pradesh Gramin Bank   | 274                                 |
| 9         | Jammu and Kashmir Grameen Bank | 326                                 |
| 10        | Jharkhand Gramin Bank          | 449                                 |
| 11        | Karnataka Grameena Bank        | 1,750                               |
| 12        | Kerala Grameena Bank           | 635                                 |
| 13        | Madhya Pradesh Gramin Bank     | 1,319                               |
| 14        | Maharashtra Gramin Bank        | 752                                 |
| 15        | Manipur Rural Bank             | 27                                  |
| 16        | Meghalaya Rural Bank           | 89                                  |
| 17        | Mizoram Rural Bank             | 106                                 |
| 18        | Nagaland Rural Bank            | 14                                  |
| 19        | Odisha Grameen Bank            | 979                                 |
| 20        | Puducherry Grama Bank          | 48                                  |
| 21        | Punjab Gramin Bank             | 470                                 |
| 22        | Rajasthan Gramin Bank          | 1,596                               |
| 23        | Tamil Nadu Grama Bank          | 685                                 |
| 24        | Telangana Grameena Bank        | 933                                 |
| 25        | Tripura Gramin Bank            | 150                                 |
| 26        | Uttar Pradesh Gramin Bank      | 4,330                               |
| 27        | Uttarakhand Gramin Bank        | 296                                 |
| 28        | West Bengal Gramin Bank        | 960                                 |
| Total     | Total                          | 22,207                              |

Source: RRBs

ANNEXURE REFERRED TO IN PART (c) OF LOK SABHA UNSTARRED QUESTION NO.  4978  ON  'REVIEW  OF  PERFORMANCE  OF  REGIONAL  RURAL  BANKS (RRBs)' FOR ANSWER ON 23.03.2026

| District Wise No of Branches of Himachal Pradesh Gramin Bank   | District Wise No of Branches of Himachal Pradesh Gramin Bank   | District Wise No of Branches of Himachal Pradesh Gramin Bank   |
|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
| Sr. No.                                                        | Name of the District                                           | No of Branches (As on 31.12.2025)                              |
| 1                                                              | Bilaspur                                                       | 14                                                             |
| 2                                                              | Chamba                                                         | 39                                                             |
| 3                                                              | Hamirpur                                                       | 25                                                             |
| 4                                                              | Kangra                                                         | 52                                                             |
| 5                                                              | Kinnaur                                                        | 3                                                              |
| 6                                                              | Kullu                                                          | 19                                                             |
| 7                                                              | Lahaul and Spiti                                               | 2                                                              |
| 8                                                              | Mandi                                                          | 57                                                             |
| 9                                                              | Shimla                                                         | 26                                                             |
| 10                                                             | Sirmaur                                                        | 9                                                              |
| 11                                                             | Solan                                                          | 14                                                             |
| 12                                                             | Una                                                            | 14                                                             |
| Total                                                          | Total                                                          | 274                                                            |

Source: HPGB

## ANNEXURE REFERRED TO IN PART (c) OF LOK SABHA UNSTARRED QUESTION NO. 4978 ON 'REVIEW OF PERFORMANCE OF REGIONAL RURAL BANKS (RRBs)' FOR ANSWER ON 23.03.2026

| District Wise No of Branches of Karnataka Grameena Bank   | District Wise No of Branches of Karnataka Grameena Bank   | District Wise No of Branches of Karnataka Grameena Bank   |
|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
| Sr No                                                     | Name of District                                          | No of Branches (As on 31.12.2025)                         |
| 1                                                         | Bagalkote                                                 | 76                                                        |
| 2                                                         | Ballari                                                   | 52                                                        |
| 3                                                         | Belagavi                                                  | 167                                                       |
| 4                                                         | Bengaluru Rural                                           | 19                                                        |
| 5                                                         | Bengaluru South                                           | 14                                                        |
| 6                                                         | Bengaluru Urban                                           | 51                                                        |
| 7                                                         | Bidar                                                     | 51                                                        |
| 8                                                         | Chamarajanagara                                           | 26                                                        |
| 9                                                         | Chikkaballapura                                           | 37                                                        |
| 10                                                        | Chikkamagaluru                                            | 52                                                        |
| 11                                                        | Chitradurga                                               | 84                                                        |
| 12                                                        | Dakshina Kannada                                          | 24                                                        |
| 13                                                        | Davanagere                                                | 51                                                        |
| 14                                                        | Dharwad                                                   | 75                                                        |
| 15                                                        | Gadag                                                     | 61                                                        |
| 16                                                        | Hassan                                                    | 60                                                        |
| 17                                                        | Haveri                                                    | 77                                                        |
| 18                                                        | Kalaburagi                                                | 87                                                        |
| 19                                                        | Kodagu                                                    | 26                                                        |
| 20                                                        | Kolar                                                     | 45                                                        |
| 21                                                        | Koppal                                                    | 51                                                        |
| 22                                                        | Mandya                                                    | 58                                                        |
| 23                                                        | Mysuru                                                    | 95                                                        |
| 24                                                        | Raichur                                                   | 68                                                        |
| 25                                                        | Shivamogga                                                | 42                                                        |
| 26                                                        | Tumakuru                                                  | 67                                                        |
| 27                                                        | Udupi                                                     | 23                                                        |
| 28                                                        | Uttara Kannada                                            | 46                                                        |
| 29                                                        | Vijayanagara                                              | 50                                                        |
| 30                                                        | Vijayapura                                                | 79                                                        |
| 31                                                        | Yadgir                                                    | 36                                                        |
| Total                                                     | Total                                                     | 1,750                                                     |

Source: KGB