Indian Economy News

Regional Rural Banks (RRBs) Record Strong Growth in Credit Delivery during FY26

Regional Rural Banks (RRBs) strengthened rural credit delivery and financial inclusion during FY26, with gross loans outstanding rising 10.3% to Rs. 5.78 lakh crore (US$ 6.54 billion) from Rs. 5.24 lakh crore (US$ 5.93 billion) in FY25. Their average achievement under the Reserve Bank of India’s Priority Sector Lending (PSL) framework reached 91.7% of Adjusted Net Bank Credit (ANBC) against the prescribed overall target of 75%, with almost all RRBs meeting the target. Agriculture and allied activities remained the largest component of the RRB credit portfolio, with outstanding credit of Rs. 3.78 lakh crore (US$ 4.28 billion), accounting for 77% of total PSL. Farm credit constituted nearly 98% of agricultural lending, supporting crop cultivation, allied activities and investment across the rural economy. Credit to the Micro, Small and Medium Enterprises (MSME) sector stood at Rs. 66,978 crore (US$ 7.58 billion), representing 13.6% of total PSL, with more than 95% of MSME lending directed towards micro enterprises.

RRBs also extended Rs. 3.49 lakh crore (US$ 3.95 billion) in credit to weaker sections, reinforcing their role in expanding equitable access to institutional finance. Their lending across housing, education, renewable energy and social infrastructure further supported inclusive and sustainable development by promoting household asset creation, human capital formation, clean energy adoption and local infrastructure. The strong performance during FY26 highlights the continued expansion of rural credit and alignment of RRB lending with national development priorities. By supporting farmers, micro-enterprises, artisans, self-employed individuals and other underserved communities, RRBs continue to play an important role in strengthening rural livelihoods, promoting entrepreneurship and advancing the Government’s objective of inclusive and balanced economic growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.