New Delhi, Jan 30 (.) The Department of Financial Services (DFS) on Friday reviewed the performance of Regional Rural Banks (RRBs) in the current financial year, with the Secretary, DFS, chairing a high-level meeting here, an official statement said on Friday.
The review highlighted strong growth momentum, with the combined business of RRBs crossing the Rs 12 lakh crore mark so far in FY26.
The meeting was attended by chairpersons of all 28 RRBs along with senior officials from NABARD, sponsor banks and other key financial institutions.
The performance review covered business growth, profitability, asset quality and progress in financial inclusion initiatives up to December 2025.
RRBs now operate through a network of more than 22,000 branches spread across 26 states and three union Territories.
Collectively, these banks serve over 32 crore deposit accounts and more than 3 crore loan accounts, underlining their critical role in providing banking services in rural and semi-urban areas, the finance ministry statement added.
Provisional figures indicate that RRBs recorded a net profit of Rs 7,720 crore during the current financial year so far, improving upon last year’s performance.
The review also noted a continued improvement in asset quality, with both gross and net non-performing assets registering a decline, reflecting better credit monitoring and recovery efforts.
The banks’ contribution to financial inclusion remained a key focus area, with over 45 lakh new Jan Dhan accounts opened during FY26.
RRBs were also commended for expanding credit to priority sectors such as agriculture, micro and small enterprises, self-help groups and rural entrepreneurs.
During the meeting, the DFS Secretary stressed the need for further strengthening of digital banking infrastructure, wider adoption of technology-driven services and improvement in customer grievance redressal systems.
RRBs were also advised to diversify their loan portfolios, enhance operational efficiency and continue outreach in remote and underserved regions, while maintaining financial discipline and stability.
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