North-East Regional Rural Banks Record Rs.560 Crore Profit Growth, DFS Secretary M Nagaraju Reviews Performance at Agartala Meeting
By Our Correspondent
Agartala, May 27, 2026
A high-level regional review meeting of the North-East Regional Rural Banks (RRBs) was held in Agartala on Tuesday under the chairmanship of the M Nagaraju, IAS, Secretary of the Department of Financial Services (DFS), Government of India, focusing on strengthening rural banking, financial inclusion and digital banking infrastructure across the North-Eastern states.
The meeting was attended by the Chairpersons of all seven Regional Rural Banks operating in the North-East along with senior officials from Public Sector Banks and the National Bank for Agriculture and Rural Development (NABARD). Discussions centred on the business performance, achievements and implementation of various schemes of the Government of India and respective State Governments by the RRBs in the region.
During the review meeting, the DFS Secretary underlined the critical role played by Regional Rural Banks in supporting the rural economy, particularly in the North-East where banking accessibility remains a major challenge in several remote and underserved areas. He stated that the core strengths of RRBs lie in their deep rural presence and the strong confidence reposed in them by local people.
The Secretary appreciated the significant improvement in the financial performance of the North-Eastern RRBs during the financial year 2025-26. He highlighted the rise in profits, reduction in Non-Performing Assets (NPAs) and diversification of loan portfolios as indicators of improved operational efficiency and stronger financial health.
Emphasising the future roadmap for rural banking, the DFS Secretary said that RRBs would have to rise to the challenge of expanding and modernising digital banking facilities in the coming years. He stressed that sponsor banks have an important responsibility in providing technical support, sharing effective strategies and ensuring access to adequate information technology resources for the RRBs.
The meeting also focused on accelerating financial inclusion in unbanked and under-served regions of the North-East. The Secretary advised the RRBs to expand their network of Business Correspondents to improve doorstep banking services in remote rural areas. He further suggested identifying easily accessible land for establishing full-fledged brick-and-mortar branches and extending loans to individuals willing to construct branch buildings.
According to the review report presented during the meeting, the seven North-Eastern RRBs have significantly expanded their banking footprint across the region. Together, they now operate more than 887 branches spread over 105 districts in seven North-Eastern states. Significantly, over 92 per cent of these branches are located in rural and semi-urban areas, reinforcing their role in promoting inclusive banking.
The RRBs collectively 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. The Gross Non-Performing Assets (GNPA) ratio also declined sharply to 4.9 per cent, the lowest level recorded in the past decade, reflecting stronger asset quality and improved financial discipline among the regional rural banks.
Officials at the meeting expressed optimism that the continued strengthening of RRBs would play a vital role in boosting rural entrepreneurship, agricultural financing, self-employment opportunities and overall socio-economic development in the North-Eastern region.
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