RRBs report strong credit growth, Gross loans cross Rs 5.5 lakh crore

During FY 2025–26, Regional Rural Banks (RRBs) have reported strong credit growth. Gross loans outstanding of RRBs increased by 10.3%, from ₹5,24,163 crore in FY 2024–25 to ₹5,78,349 crore in FY 2025–26.

The average achievement against the overall PSL prescribed target of 75% reached 91.7% of Adjusted Net Bank Credit (ANBC).

Agriculture and allied activities remained the largest component of the RRB credit portfolio, with outstanding credit of ₹3.78 lakh crore, constituting 77% of total Priority Sector Lending. Farm credit accounted for nearly 98% of agricultural lending, thereby supporting crop cultivation, allied agricultural activities and investment in the rural economy

Credit to the MSME sector stood at ₹66,978 crore (13.6% of total PSL), reaffirming the pivotal role of RRBs in supporting rural entrepreneurship and employment generation. Over 95% of MSME lending was directed towards micro enterprises, reflecting the RRBs’ focus on financing first-generation entrepreneurs, self-employed individuals, artisans, and small business units in rural and semi-urban areas. Within MSME lending, the services sector accounted for the largest share, followed by manufacturing enterprises and Khadi & Village Industries.

RRBs extended credit of ₹3.49 lakh crore to weaker sections, reaffirming their commitment to financial inclusion and equitable access to institutional credit.