7 northeastern regional rural banks report net profit growth of 34 pc in FY26
New Delhi, May 27
Seven northeastern regional rural banks have reported a provisional consolidated net profit of Rs 560 crore during FY 2025-26, registering an impressive year-on-year growth of 34 per cent, according to the government.
Further, the Gross Non-Performing Assets (GNPA) ratio has declined to 4.9 per cent, the lowest level recorded in the last decade, reflecting improved financial health and stronger asset quality, according to finance ministry.
A regional review meeting of Northeast RRBs was held under the chairmanship of Secretary, Department of Financial Services at Agartala, Tripura. It was attended by chairpersons of seven RRBs in the Northeast, senior officials from public sector banks and NABARD.
DFS Secretary emphasised the crucial role of RRBs in supporting the rural economy, particularly in the North Eastern region of the country.
He highlighted that the core strengths of RRBs included their large presence in rural areas and the strong trust of the people in their respective states.
He appreciated the efforts of RRBs in Northeast in significantly improving their financial performance in the FY 2025-26 in terms of increase in profits, reduction in Non-Performing Assets (NPAs) and diversifying their loan portfolio.
Secretary, DFS further pointed out that in days to come, RRBs will have to rise up to the challenge of strengthening and expanding digital banking facilities.
In this regard, the Sponsor Banks play a significant role in terms of providing requisite technical support, sharing effective strategies, and ensuring that RRBs can access to the IT resources.
Northeastern RRBs have significantly expanded their footprint, with a network of over 887 branches spread across 105 districts in 7 States. Notably, more than 92 per cent of these branches are located in rural and semi-urban areas, according to Finance Ministry.
— IANS
Reader Comments
Good to see NPAs coming down to 4.9% - lowest in a decade. But we need to focus on digital banking too. Rural areas still face connectivity issues. Hope the government addresses this along with profit growth.
Impressive 887 branches across 105 districts! The Northeast has been underserved for too long. This expansion combined with better asset quality shows financial inclusion is finally happening.
While the profit numbers look good, I'm cautiously optimistic. Rural banking in India's Northeast faces unique challenges - difficult terrain, limited infrastructure. The real test will be sustaining this growth.
Risk of NPAs rising again if monsoons fail or crops prices drop. Need better risk management strategies for agricultural loans. But overall, this is a positive step for the region's economy.
Good to see our RRBs doing well! But digital banking expansion must be priority. In many villages, even basic internet is a challenge. Let's not forget the human touch that makes RRBs special in rural areas.
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