RRBs clock 10.3% growth in loans to ₹5.78 lakh crore in FY26

New Delhi: Regional Rural Banks (RRBs) recorded strong growth in credit delivery during 2025–26, with their gross loans outstanding rising 10.3% to ₹5.78 lakh crore, according to data released by the government.

Gross loans increased from ₹5.24 lakh crore in FY25 to ₹5.78 lakh crore in FY26, reflecting the continued role of RRBs in supporting rural economies and expanding financial inclusion.

RRBs recorded an average achievement of 91.7% of Adjusted Net Bank Credit (ANBC) against the Reserve Bank of India’s overall Priority Sector Lending (PSL) target of 75%. Almost all RRBs met the prescribed overall PSL target.

Agriculture and allied activities remained the largest component of RRB lending. Credit outstanding to the sector stood at ₹3.78 lakh crore, accounting for 77% of total PSL. Farm credit constituted nearly 98% of agricultural lending, supporting crop cultivation and allied activities.

RRBs also extended ₹66,978 crore to the MSME sector, representing 13.6% of total PSL. More than 95% of this lending went to micro enterprises, including small businesses, artisans, self-employed individuals and first-generation entrepreneurs.

Credit extended to weaker sections stood at ₹3.49 lakh crore, underlining the banks’ focus on providing institutional credit to underserved communities.

RRBs also continued lending for housing, education, renewable energy and social infrastructure, supporting household asset creation, human capital development and sustainable growth.

The government said the FY26 performance highlights the continued expansion of rural credit and the important role of RRBs in supporting farmers, micro-enterprises and other underserved sections, while advancing inclusive and balanced economic growth.