Regional Rural Banks Record Strong Growth In Credit Delivery In 2025-26, Says Ministry Of Finance

Ministry of Finance has said that Regional Rural Banks (RRBs) have recorded strong growth in credit delivery during the financial year 2025-26.

The Ministry said the performance of RRBs under the Reserve Bank of India’s Priority Sector Lending framework remained strong during the year. However, the gross loans outstanding of RRBs increased by 10.3 percent from nearly 5 lakh 24 thousand crore rupees in financial year 2024- 25 to over 5 lakh 78 thousand crore rupees in 2025-26.

The Ministry said that agriculture and allied activities remained the largest component of the RRB credit portfolio, with outstanding credit of 3.78 lakh crore rupees constituting 77 percent of the total Priority Sector Lending.

Credit to the MSME sector stood at around 67 thousand crore rupees, reaffirming the pivotal role of RRBs in supporting rural entrepreneurship and employment generation.

The Ministry said, the financial performance of RRBs during the year 2025-26 highlights sustained expansion in rural credit, strong alignment with national development priorities and continued support to farmers, micro-enterprises and other underserved segments.