RRBs Achieve Record Profit Amid Boosted Financial Health in 2023-24

Regional Rural Banks have achieved a record profit of Rs 7,571 crore in 2023-24, along with consistent improvement in financial health parameters such as reduced NPAs and increased credit-to-deposit ratios. The government is actively reviewing progress on financial inclusion and enhancing loan limits under various schemes.

Regional Rural Banks (RRBs) reached a historic milestone, securing a record profit of Rs 7,571 crore for the fiscal year 2023-24, as disclosed to Parliament. Key indicators demonstrate significant financial health improvements, including a drop in net non-performing assets to 2.4% and increased credit-to-deposit ratios of 71.4%.

The government, as part of its efforts to bolster financial inclusion, has evaluated RRBs' performance under schemes like the Pradhan Mantri Jan Dhan Yojana. Modifications in schemes such as the Modified Interest Subvention Scheme aim to enhance farmers' benefits by increasing the loan cap through the Kisan Credit Card.

Further digital transformation is underway, with the government launching the Jan Samarth portal, integrating 15 loan schemes for streamlined digital applications. This shift towards digital solutions is echoed by banks offering online platforms for end-to-end loan processing.

(With inputs from agencies.)