Regional Rural Banks (RRBs) posted a record net profit of ₹7,571 crore in 2023-24, Parliament was informed on Tuesday.
Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha that RRBs have shown steady improvement in financial indicators.
“RRBs have achieved their highest-ever consolidated net profit. They have also improved key financial parameters like CRAR, deposits, advances, NPA, and the credit-to-deposit (CD) ratio,” he said.
The total balance sheet size of RRBs grew from ₹7,04,556 crore in 2021-22 to ₹8,40,080 crore in 2023-24.
Their net NPA declined from 4.7% to 2.4% during the same period. The CD ratio improved from 64.5% to 71.4%.
The government has reviewed RRBs’ financial inclusion efforts.
It assessed their performance under schemes like Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Atal Pension Yojana.
Chaudhary also highlighted the Centre’s Modified Interest Subvention Scheme (MISS).
Under MISS, the government provides banks with a 1.5% interest subvention for short-term working capital loans up to ₹3 lakh at 7% per annum.
Farmers who repay on time receive a 3% incentive, reducing the effective interest rate to 4%.
In the Union Budget 2025-26, the government announced an increase in the loan limit under MISS from ₹3 lakh to ₹5 lakh for Kisan Credit Card (KCC) loans.
The Jan Samarth portal serves as a one-stop digital platform for 15 government-backed loan and subsidy schemes.
It streamlines loan applications using digital evaluation. Banks and financial institutions have also launched online platforms and mobile apps to speed up loan processing and reduce paperwork.
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