- Crisis In Indian Banking Leads to Work Pressure and Driving Employees To Despair, Commit Extreme Steps
- Toxic work culture on the rise in banks
- 5DaysBanking: Bankers Urgently Demand 2 Days Off Per Week
- Banks see over 15% growth in new credit card addition: RBI data
- Banks Transfer ₹37,176 Crore to RBI’s Depositor Education and Awareness Fund in Last 3 Years
- Calls for Bankers’ Safety Amplified After Video of SBI Branch Manager Attack Goes Viral
- Nainital Bank Faces Privatisation Move Amid Staff Protests
- Whistleblowers Expose Nexus Operating from Three Banks
- Preserving RRBs: AIRRBEA Defends Rural Banking Against AIBOC-AIBEA Merger Proposals
- Union Bank of India’s new directive for weekend work at Retail Loan Points (RLPs) has sparked outrage among bankers
RRBs Clock Highest Net Profit With 52% Surge as Net NPAs Hit 3-Year Low
RRBs achieved a record ₹7,571 crore net profit in FY 2023-24, marking a 52% surge. With declining NPAs and stronger financials, they showcase resilience amid ongoing 'One State, One RRB' reforms.
Author: Saurav Kumar
Published: March 27, 2025
Amid the ongoing One State One State reform, the Regional Rural Banks (RRBs) have registered an unprecedented financial upswing, clocking their highest-ever net profit of ₹7,571 crore in FY 2023-24. This marks a substantial 52% increase from FY 2022-23, underlining the sector’s resilient performance amid ongoing policy changes and structural overhauls.
The figures were detailed by Minister of State (MoS) in the Ministry of Finance, Pankaj Choudhary on March 25, 2025 in Rajya Sabha. He said, “Financial health of RRBs has improved in the recent years as they have posted the highest ever consolidated net profit of ₹7,571 crore during FY 2023-24. Also, the RRBs have shown consistent improvement in key financial parameters like CRAR, deposits, advances, NPA, CD ratio etc.”
Net Profit Peaks as RRBs Outshine Previous Records
In FY 2021-22, RRBs reported a net profit of ₹3,219 crore. This figure surged to ₹4,974 crore in FY 2022-23 before achieving a historic high of ₹7,571 crore in FY 2023-24—a staggering 135% increase over two years. The growth trajectory reflects improved asset quality, better cost management, and increased operational efficiency across the board.
Net NPAs Decline as CD Ratio and CRAR Strengthen
Alongside a sharp rise in profitability, Regional Rural Banks (RRBs) have shown significant improvements in key financial indicators, reflecting stronger operational health. Net Non-Performing Assets (NPAs) dropped from 4.7% in FY 2021-22 to 2.4% in FY 2023-24—a substantial 49% reduction, signaling enhanced loan recoveries and tighter credit assessment processes.
This improvement in asset quality aligns with a rising Credit-Deposit (CD) ratio, which increased from 64.5% to 71.4% during the same period. The higher CD ratio suggests that RRBs are expanding their lending activities, effectively channeling more deposits into credit disbursement to support rural economies.
Further strengthening their financial position, RRBs also improved their Capital to Risk-Weighted Assets Ratio (CRAR)—a key measure of financial stability—from 12.7% in FY 2021-22 to 14.2% in FY 2023-24. This rise indicates a conscious effort to bolster capital reserves, ensuring resilience against potential financial shocks while meeting the rising credit demand.
Promising Trajectory
The record-breaking profits and improved financial metrics signal a promising future for Regional Rural Banks as they navigate ongoing structural reforms. With rising profitability, declining NPAs, and stronger capital reserves, RRBs are not only enhancing their financial resilience but also reaffirming their critical role in fostering rural credit and financial inclusion.