Regional Rural Banks

Par panel recommends IPO route for profitable RRBs to raise capital

The government should consider launching public offerings of highly profitable Regional Rural Banks (RRBs) to attract market capital and promote stronger corporate governance standards, a Parliamentary panel has said in its report. Standing Committee on Finance, headed by senior BJP leader Bhartruhari Mahtab noted the successful completion of the structural consolidation of RRBs, reducing their number from 43 to 28 highly viable entities across 11 states, eliminating the need for further capital infusion in 2026-27. RRBs have achieved a historic consolidated net profit of Rs 7,720 crore in just the first nine months of FY 2025-26, driving gross NPAs down to a 13-year low of 5.4 per cent, though vulnerabilities remain, particularly the 13.8 per cent GNPA in priority sector education loans. The panel recommend that RRBs actively mitigate these specific sectoral risks by fully leveraging their inclusion in the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) and aggressively .

Vishwakarma allocation cut in FY27 despite steady loan processing by banks

Budgetary support for PM Vishwakarma has been cut in FY27 even as banks process lakhs of artisan loan applications, raising questions on credit absorption and scheme scale-up

Centre to hold national review of RRBs' financials, PSL on January 30

The meeting will be chaired by M Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance

Rate cuts may impact margins by up to 5-10 bps: PNB MD Ashok Chandra

PNB expects to recover over ₹400 crore from MTNL and up to ₹500 crore through NPA sales this quarter, as the bank sharpens its focus on asset recovery and balance-sheet strength

FinMin unveils single brand logo for Regional Rural Banks nationwide

The Finance Ministry on Thursday unveiled a new logo for Regional Rural Banks (RRBs) to signify a single and unified brand identity. On the principle of 'One State One RRB', the Department of Financial Services, Ministry of Finance, has consolidated 26 Regional Rural Banks (RRBs) across 11 states/UTs, effective from May 1, 2025. The reform marks a crucial step toward building stronger and more efficient RRBs. Presently, 28 RRBs continue to serve the nation through an extensive network of over 22,000 branches in more than 700 districts. As part of creating a single and unified brand identity for the RRBs after the major amalgamation drive, a common logo for the 28 RRBs has been unveiled, the Finance Ministry said in a statement. This marks an important step toward strengthening the identity and visibility of these institutions serving the rural communities, it added. The colours of the RRB logo have been chosen to convey the objectives of the RRBs, it said, adding that dark blue ..

50 years of RRBs: A story of reform and transformation in rural India

After consolidation, creating a national rural bank holding company, an apex body to oversee governance, capital support, and technology integration across RRBs can be considered

After consolidation, regional rural banks are helping India's growth story

Lenders play a significant role in assimilating the financially weaker sections of the society

FinMin asks sponsor banks to draft 5-year growth plan for RRBs

The finance ministry has also asked the sponsor banks of RRBs to submit action plans for expansion of branches and business of RRBs in the next five years

Centre plans to list at least five regional rural banks by FY27-end

Post the latest amalgamation effective May 1, there are 28 RRBs in 26 states and 2 UTs with more than 22,000 branches covering 700 districts

RRBs must boost their lending in agriculture, allied activities: DFS secy

With the implementation of "One State, One RRB", regional rural banks will expand their lending in agriculture and allied activities, MSME and government-sponsored schemes, Financial Services Secretary M Nagaraju said on Monday. During a meeting to review the performance of the regional rural banks (RRBs) and the progress on their amalgamation plan, Nagaraju asked the sponsor banks and RRBs to recognise the challenges that lie ahead. The RRBs have grown in their reach to more than 22,000 branches, covering 700 districts in the country, and more than 92 per cent of their branches are in rural and semi-urban areas, the finance ministry said in a statement. The RRBs recorded a consolidated net profit of Rs 7,148 crore in 2024-25. The Gross Non-Performing Assets (GNPA) have reached a new low of 5.3 per cent, the lowest in a 10-year period, the ministry said. During the meeting chaired by the secretary, it was decided that the sponsor banks, in consultation with the RRBs, will draft a

Regional banks to function under 'One State, One RRB' from today: Details

28 Regional Rural Banks, down from 43, with more than 22,000 branches, will serve 700 districts in India

RBI mandates 2.5% additional run-off factor on digital retail deposits

Final norms will come into effect from April 1, 2026

Sitharaman to assess RRB consolidation as 'One state-one RRB' takes effect

Finance Minister Nirmala Sitharaman is likely to review the implementation and progress of 'One state-one RRB' on May 6. One state-one RRB will become a reality from May 1 with consolidation of 15 Regional Rural Banks across 11 states to achieve better operational efficiency and cost rationalisation. With this fourth round of consolidation of regional rural banks (RRBs), the number would reduce to 28 from the existing 43. According to sources, the Finance Minister is scheduled to hold a meeting with RRBs and review various issues including consolidation. RRBs in 11 states - Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan - are to be merged into one entity, for each of these to realise the goal of One state-one RRB. In Andhra Pradesh, Chaitanya Godavari Grameena Bank, Andhra Pragathi Grameena Bank, Saptagiri Grameena Bank and Andhra Pradesh Grameena Vikas Bank sponsored by Union Bank of ...

FinMin to hold high-level talks on 'One State, One RRB' execution on May 6

On April 7, the Union government released a gazette notification announcing the amalgamation of several RRBs, effective from May 1, 2025

FinMin to implement 'one state, one RRB' soon to improve efficiency

The finance ministry will soon implement the 'One State-One RRB' plan to achieve operational efficiency and cost rationalisation and consolidation of 43 regional rural banks (RRBs) to 28. Most of the work related to the issue of consolidation have been completed and the fourth round would happen soon, according to sources. As per the roadmap prepared by the finance ministry, 15 RRBs operating in various states would be merged. Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum number of RRBs (4), Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each). In the case of Telangana, sources said, the issue related with bifurcation of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Grameena Bank have concluded. As a precursor to consolidation, the capital infusion was done in these RRBs. The financial yea

RRBs earned record profit of Rs 7,571 cr in FY24: Govt tells Rajya Sabha

Regional Rural Banks (RRBs) have earned a record profit of Rs 7,571 crore during 2023-24, Parliament was informed on Tuesday. "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 2023-24. Also, the RRBs have shown consistent improvement in key financial parameters like CRAR, deposits, advances, NPA, CD ratio etc," Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha. The key financial parameters of RRBs have improved consistently in past years, he said, adding that the total balance sheet size of RRBs have increased from Rs 7,04,556 crore in 2021-22 to Rs 8,40,080 crore in 2023-24. Further, the net NPA has declined from 4.7 per cent in 2021-22 to 2.4 per cent in 2023-24, he said. Also, the credit-to-deposit ratio has increased from 64.5 per cent in 2021-22 to 71.4 per cent in 2023-24, he added. "The government has also reviewed the progress made by RRBs in .

RRBs get five more years to amortise additional pension liabilities

RRBs were earlier permitted to amortise their liability on account of the Employee Pension Scheme 2018 over five years

Boost credit flow to allied agri activities: FM Nirmala Sitharaman to RRBs

FM also directed Uttar Bihar Gramin Bank to increase credit flow to fisheries and foxnut (makhana) to realise the full potential of these activities in the region

PM Modi visualises women-led economic growth for India: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Friday asserted that PM Narendra Modi was of the view that women would steer economic growth in the country, which was on its way to becoming the third largest economy in the world. She was speaking at a credit outreach programme held in the north Bihar town of Darbhanga, where she was joined by cabinet colleague Chirag Paswan and Deputy Chief Minister Samrat Choudhary, among others. Sitharaman said, "Earlier, PM Modi used to tell me that the Union budget should be women-centric. But now he says the budget should be one that visualises women in leadership roles." The finance minister, who is on a two-day tour of Bihar, noted that the region, which was known for 'makhana' and Madhubani paintings, owed these to women's hard work. "We have brought in projects like 'Drone Didi'. Besides, cash assistance is being provided to women entrepreneurs through self-help groups. They are also being imparted with skills. Standing here, the birthplace o

Finmin starts phase 4 of RRB consolidation, number to fall from 43 to 28

In a bid to achieve operational efficiency and cost rationalisation, the Finance Ministry has initiated the fourth round of consolidation for Regional Rural Banks (RRBs) and the number of such banks is likely to come down to 28 from 43 at present. As per the roadmap prepared by the Finance Ministry, 15 RRBs operating in various states would be merged. Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum number of RRBs (4), Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each). In the case of Telangana, the amalgamation of RRBs will be subject to bifurcation of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Grameena Bank. "Given the rural expansion of RRBs and agro-climatic or geographical ethos and in order to retain the USP of RRBs viz the closeness to communities, it is the felt need to embark on .