Regional Rural Banks (RRBs) recorded strong growth in credit delivery during FY 2025–26, with gross loans outstanding rising 10.3% to ₹5,78,349 crore from ₹5,24,163 crore in FY 2024–25. RRBs also maintained strong performance under the Reserve Bank of India’s Priority Sector Lending framework.
Regional Rural Banks Maintain Strong Priority Sector Lending
The average achievement against the overall Priority Sector Lending (PSL) target of 75% reached 91.7% of Adjusted Net Bank Credit (ANBC) during FY 2025–26. Almost all RRBs achieved the overall PSL target during the year.
Agriculture and allied activities remained the largest component of the RRB credit portfolio. Outstanding credit to the sector stood at ₹3.78 lakh crore, accounting for 77% of total Priority Sector Lending. Farm credit represented nearly 98% of agricultural lending, covering crop cultivation, allied agricultural activities and investment in the rural economy.
Credit to the Micro, Small and Medium Enterprises (MSME) sector stood at ₹66,978 crore, representing 13.6% of total PSL. More than 95% of MSME lending was directed towards micro enterprises. Within MSME lending, the services sector accounted for the largest share, followed by manufacturing enterprises and Khadi & Village Industries.
RRBs also extended ₹3.49 lakh crore in credit to weaker sections during FY 2025–26. Lending for housing, education, renewable energy and social infrastructure also formed part of the RRB credit portfolio, supporting access to institutional credit across rural and underserved segments.
The latest figures show continued expansion in rural credit delivery during FY 2025–26, with RRBs maintaining a strong focus on agriculture, MSMEs, weaker sections and other priority sectors.
