Regional Rural Banks (RRBs) recorded strong growth in credit delivery during the financial year 2025-26, reflecting their continued role in supporting rural economic development and financial inclusion, the Ministry of Finance said.
According to data released by the Ministry, gross loans outstanding of RRBs increased by 10.3 per cent year-on-year, rising from ₹5.24 lakh crore in 2024-25 to ₹5.78 lakh crore in 2025-26.
The performance of RRBs under the Reserve Bank of India’s Priority Sector Lending framework also remained strong. Their average achievement against the overall PSL target of 75 per cent stood at 91.7 per cent of Adjusted Net Bank Credit (ANBC) during the year, with almost all RRBs meeting the overall target.
Agriculture and allied activities continued to account for the largest share of RRB lending. Outstanding credit to the sector stood at around ₹3.78 lakh crore, representing about 77 per cent of total priority sector lending. Farm credit accounted for nearly 98 per cent of agricultural lending, supporting crop cultivation, allied activities and investment in the rural economy.
RRBs also maintained a significant focus on micro, small and medium enterprises (MSMEs), with outstanding credit to the sector reaching ₹66,978 crore, or around 13.6 per cent of total priority sector lending.
The Ministry said the figures underline the important role of RRBs in expanding institutional credit to farmers, rural entrepreneurs, MSMEs and other underserved sections. Their growing credit outreach is expected to further strengthen financial inclusion and contribute to sustainable rural economic growth.
