**Executive Summary**
This document presents the Government of India's response to Lok Sabha Unstarred Question No. 111 concerning the financial performance of Regional Rural Banks (RRBs). It details the government's ongoing review process, the financial performance reviews held, and the progress made by RRBs in strengthening financial inclusion. The response was provided on December 1, 2025.
**Key Points / Main Content**
* **Government Review of RRBs:**
* The government regularly reviews the financial performance of RRBs at national and regional levels.
* Reviews are conducted at the level of NABARD and the Department of Financial Services.
* **Reviews Under the Chairmanship of Finance Minister:**
* Several reviews of RRBs have been held under the Chairmanship of the Finance Minister over the last four financial years. These reviews occurred at various locations and dates, focusing on regional and national RRBs.
* **Agenda Items for Review Meetings:**
* Review of RRB performance on financial parameters and technology upgrades.
* Thrust on Micro, Small, and Medium Enterprise (MSME) portfolio.
* Importance of loan diversification towards Agri-allied, MSME, and Retail sectors.
* **Improvement in Financial Health of RRBs:**
* RRBs posted a consolidated net profit of Rs. 7,571 Crore during FY 2023-24 and Rs. 6,825 Crore during FY 2024-25.
* Consistent improvement is shown in key financial parameters such as Capital to Risk Weighted Assets Ratio (CRAR), Deposits, Advances, Non-Performing Asset (NPA), and Credit-Deposit Ratio (CD ratio).
* **Review of Financial Inclusion Schemes:**
* The government has reviewed the progress made by RRBs in deepening financial inclusion through 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), and Atal Pension Yojana (APY).
* **Financial Performance Metrics:**
*Key metrics for FY 2020-21, FY 2021-22, FY 2022-23, FY 2023-24, FY 2024-25 and September 2025 (Provisional) have been reported for:
*Total Deposits
*Loans Outstanding
*Credit-Deposit Ratio
*Gross Non-Performing Asset
*Net Non-Performing Asset
*Net Profit
*Net Worth
*Capital to Risk Weighted Assets Ratio
**Impact Analysis**
**Key Stakeholders:** Regional Rural Banks (RRBs), Government of India (Ministry of Finance, Department of Financial Services), NABARD, Sponsor Banks.
**Impact:**
**RRBs:**
* RRBs are directly impacted by the review of their financial performance and financial inclusion efforts.
**Action Required:**
* RRBs need to continue improving financial performance, with a focus on key parameters and increasing financial inclusion in rural areas.
* RRBs may need to adjust lending practices to support MSMEs and diversify loan portfolios.
**Government of India (Ministry of Finance, Department of Financial Services):**
**Impact:**
* The government is responsible for monitoring and regulating RRBs to ensure financial stability and inclusion.
**Action Required:**
* The government must continue to conduct regular reviews and implement policies to support the growth and stability of RRBs.
**NABARD:**
**Impact:**
*NABARD is involved in the financial performance reviews.
**Action Required:**
* Continue to participate in reviews and provide support to RRBs as needed.
**Sponsor Banks:**
**Impact:**
* Sponsor banks are impacted as they participate in regular meetings with RRBs and the Department of Financial Services.
**Action Required:**
* Sponsor banks need to actively engage with RRBs to provide support and guidance.
Key Entities Referenced
Regional Rural Banks (RRBs): Financial institutions focused on providing credit and banking services to rural areas. The document discusses their financial performance, reviews, and progress in financial inclusion.
Ministry of Finance: The primary ministry overseeing the financial performance and policies related to Regional Rural Banks.
Department of Financial Services: A department under the Ministry of Finance that conducts meetings and reviews related to RRBs.
Pradhan Mantri Jan-Dhan Yojana (PMJDY): A financial inclusion scheme aimed at providing access to banking services.
NABARD: National Bank for Agriculture and Rural Development is involved in reviewing RRBs.
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 Bengaluru9. 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, Non-
Performing 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.
********ANNEXURE
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
As on 30
Sr. Key Financial FY FY FY FY FY September
No. Parameters 2020-21 2021-22 2022-23 2023-24 2024-25 2025
(Provisional)
Total Deposits
1. 5,25,226 5,62,538 6,08,509 6,59,815 7,13,800 7,20,000
(In Rs. Crore)
Loans Outstanding
2. 3,34,171 3,62,838 4,14,368 4,71,384 5,26,763 5,50,509
(In Rs. Crore)
Credit-Deposit Ratio
3. 63.6 64.5 68.1 71.4 73.8 76.5
(CD ratio) (%)
Gross Non-
4. Performing Asset 9.4 9.1 7.2 6.1 5.4 5.8
(GNPA) (%)
Net Non-Performing
5. 4.8 4.7 3.2 2.4 2.0 2.3
Asset (NNPA) (%)
Net Profit
6. 1,685 3,219 4,974 7,571 6,825 6,274
(In Rs. Crore)
Net Worth
7. 30,476 40,177 47,451 56,780 63,927 69,184
(In Rs. Crore)
Capital to Risk
8. Weighted Assets 10.2 12.7 13.4 14.2 14.4 14.8
Ratio (CRAR) (%)