Regional Rural Banks demonstrated robust credit expansion in 2025-26, with gross loans rising 10.3% to ₹5,78,349 crore compared to ₹5,24,163 crore at the end of 2024-25, according to the Finance Ministry. This growth reflects the continued expansion in rural credit delivery and sustained alignment with national development priorities. The performance underscores RRBs' role as key institutions in advancing financial inclusion and strengthening rural livelihoods, with the strong flow of institutional credit highlighting their continued importance in meeting the financing requirements of farmers and rural communities.
RRBs maintained strong performance under the Reserve Bank of India's Priority Sector Lending framework, achieving 91.7% of the prescribed target against the overall prescribed target of 75% of Adjusted Net Bank Credit (ANBC), as reported by the Finance Ministry. Almost all RRBs achieved the overall PSL target, reflecting their continued focus on priority sectors and financial inclusion. The strong PSL achievement demonstrates RRBs' commitment to supporting underserved segments of the economy, with their performance in FY 2025-26 reflecting sustained expansion in rural credit and their continued contribution to farmers, micro-enterprises and underserved communities.
Agriculture and allied activities continued to dominate the RRB credit portfolio, with outstanding credit of ₹3.78 lakh crore, accounting for 77% of total Priority Sector Lending. Farm credit represented nearly 98% of agricultural lending, supporting crop cultivation, allied activities, and rural economy investment. Credit to the micro, small and medium enterprises sector stood at ₹66,978 crore, representing 13.6% of total PSL. More than 95% of MSME lending was directed towards micro enterprises, supporting first-generation entrepreneurs, self-employed individuals, artisans and small business units in rural and semi-urban areas, with the services sector accounting for the largest share followed by manufacturing enterprises and Khadi and Village Industries.
RRBs extended ₹3.49 lakh crore of credit to weaker sections, reaffirming their role in expanding access to institutional credit among underserved segments. Lending for housing, education, renewable energy and social infrastructure further contributed to inclusive and sustainable development by supporting human capital formation, household asset creation, clean energy adoption and local infrastructure development, as reported by the Finance Ministry. The performance of RRBs in FY 2025-26 reflects sustained expansion in rural credit and their continued contribution to farmers, micro-enterprises and underserved communities, strengthening financial inclusion and balanced economic growth.
