**Executive Summary**
On May 26, 2026, the Secretary of the Department of Financial Services (DFS) chaired a regional meeting in Agartala to review the performance of seven North-East Regional Rural Banks (RRBs). For FY 2025-26, these RRBs reported a record consolidated net profit of ₹560 crore and a decade-low GNPA ratio of 4.9%. Key priorities established during the meeting include the expansion of digital banking, the establishment of new physical branches, and deeper financial inclusion in underserved rural areas.
**Key Points / Main Content**
**Financial Performance (FY 2025-26)**
* **Profitability:** Reported a provisional consolidated net profit of ₹560 crore, representing a 34% year-on-year growth.
* **Asset Quality:** The Gross Non-Performing Assets (GNPA) ratio declined to 4.9%, the lowest level recorded in the last decade.
* **Operational Growth:** Improved financial health was driven by increased profits, reduced NPAs, and a diversified loan portfolio.
**Operational Footprint**
* **Network Reach:** The 7 RRBs operate 887 branches across 105 districts in seven states.
* **Rural Focus:** Over 92% of the existing branch network is located in rural and semi-urban areas.
**Strategic Initiatives and Digital Expansion**
* **Digital Banking:** A primary mandate was issued to strengthen and expand digital banking facilities to meet future challenges.
* **Financial Inclusion:** Focus is directed toward reaching unbanked and underserved populations in the North-Eastern region.
* **Infrastructure Development:** RRBs are tasked with identifying accessible land to set up full-fledged brick-and-mortar branches.
* **Credit Support:** RRBs will extend loans to individuals willing to construct buildings for new branch locations.
* **Business Correspondents:** Plans include expanding the network of Business Correspondents to increase reach.
**Impact Analysis**
**North-East Regional Rural Banks (RRBs)**
**Impact:** These banks are recognized as critical drivers of the rural economy with high levels of public trust. They are now under pressure to transition from traditional models to advanced digital frameworks.
**Action Required:** RRBs must expand their Business Correspondent networks, identify land for new branches, and diversify loan portfolios while maintaining asset quality.
**Sponsor Banks**
**Impact:** Sponsor banks are identified as essential partners in the technological upgrading of RRBs.
**Action Required:** They must provide requisite technical support, share effective operational strategies, and ensure RRBs have full access to necessary IT resources.
**Rural and Underserved Populations**
**Impact:** Residents in remote North-Eastern districts will gain better access to both digital and physical banking infrastructure.
**Action Required:** Individuals willing to facilitate branch expansion can avail themselves of loans from RRBs to construct accessible buildings for new bank premises.
Key Entities Referenced
North Eastern Regional Rural Banks (RRBs): The primary group of seven banks whose financial performance, digital expansion, and implementation of government schemes are being reviewed.
Department of Financial Services (DFS): The department within the Ministry of Finance responsible for overseeing the regional meeting and directing the performance of rural banking institutions.
NABARD: The national regulatory and developmental bank involved in the regional review meeting to monitor business performance and scheme implementation.
Agartala, Tripura: The central location of the regional meeting, defining the geographic focus of the performance review for the North-Eastern region.
Sponsor Banks: The entities responsible for providing technical support, IT resources, and strategic guidance for the digital expansion of Regional Rural Banks.
Ministry of Finance
DFS Reviews Performance of North-East RRBs
at Regional Meeting in Agartala, Tripura today
North Eastern RRBs report provisional consolidated net profit
of ₹560 crore in FY 2025-26, with year-on-year growth of 34%
Secretary, DFS emphasises digital banking expansion and
deeper financial inclusion in underserved rural areas
Posted On: 26 MAY 2026 9:34PM by PIB Delhi
A regional review meeting of North-East Regional Rural Banks was held under the chairmanship of
Secretary, Department of Financial Services at Agartala, Tripura today. The meeting, attended by
Chairpersons of seven RRBs in the North-East, senior officials from Public Sector Banks and NABARD,
focused on reviewing the business performance and achievements of the 7 North Eastern RRBs in
implementing various schemes of Government of India and the concerned State Governments.During the review meeting, Secretary, DFS emphasised the crucial role of RRBs in supporting the rural
economy, particularly in the North Eastern region of the country. He highlighted that the core strengths of
RRBs included their large presence in rural areas and the strong trust of the people in their respective
States. He appreciated the efforts of RRBs in the North East in significantly improving their financial
performance in the FY 2025-26 in terms of increase in profits, reduction in Non-Performing Assets
(NPAs) and diversifying their loan portfolio.
Secretary, DFS further pointed out that in days to come, RRBs will have to rise up to the challenge of
strengthening and expanding digital banking facilities. In this regard, the Sponsor Banks play a significant
role in terms of providing requisite technical support, sharing effective strategies, and ensuring that RRBs
can access to the IT resources. Moreover, expectations from RRBs in the North-Eastern region are high
for ensuring financial inclusion of the still unbanked and under-served regions and population. For this
purpose, RRBs will not only have to expand their network of Business Correspondents, but also identify
suitable land that is easily accessible so that full-fledged brick and mortar branches can be set up by
extending loans to individuals who are willing to construct the building.
North Eastern RRBs have significantly expanded their footprint, with a network of over 887 branches
spread across 105 districts in 7 States. Notably, more than 92% of these branches are located in rural and
semi-urban areas. The 7 RRBs have reported a provisional consolidated net profit of ₹560 crore during
FY 2025–26, registering an impressive year-on-year growth of 34%. Further, the Gross Non-Performing
Assets (GNPA) ratio has declined to 4.9%, the lowest level recorded in the last decade, reflecting
improved financial health and stronger asset quality.
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