Regional rural banks in NE post Rs 560 cr profit, bad loans at 10-year low

Agartala: Regional Rural Banks (RRBs) in the Northeast have reported a provisional consolidated net profit of Rs 560 crore in the 2025-26 financial year, registering a 34 per cent year-on-year growth, officials said on Tuesday.

The Gross Non-Performing Assets (GNPA) ratio of the seven RRBs declined to 4.9 per cent, the lowest level in the last decade, reflecting improved asset quality and stronger financial health, officials said.

The figures were reviewed during a regional meeting of Northeast RRBs held in Agartala under the stewardship of M Nagaraju.

According to officials, the seven RRBs in the region operate more than 887 branches across 105 districts in seven northeastern states, with over 92 per cent of the branches located in rural and semi-urban areas.

The meeting, attended by chairpersons of the seven RRBs, senior officials of public sector banks and NABARD, reviewed business performance and implementation of central and state government schemes.

Addressing the meeting, Nagaraju said RRBs play a crucial role in supporting the rural economy in the Northeast because of their extensive presence in rural areas and the trust they enjoy among local communities.

He appreciated the improvement in profitability, reduction in bad loans and diversification of loan portfolios by the RRBs during FY26.

The DFS secretary also stressed the need to strengthen digital banking infrastructure in the region and said sponsor banks should provide technical support and IT resources to RRBs.

He urged banks to expand financial inclusion in unbanked and underserved areas by increasing the number of business correspondents and opening more branches in accessible locations.

Meanwhile, banks operating in Tripura sanctioned loans worth Rs 419.11 crore to more than 10,000 beneficiaries under various government schemes and sectors at a mega credit outreach programme organised by the State Level Bankers’ Committee (SLBC).

The programme, organised at Rabindra Satabarshiki Bhavan by Punjab National Bank, the lead bank of the SLBC, was attended by Nagaraju and senior officials of banks and NABARD.

Officials said sanction letters for loans amounting to Rs 419.11 crore were distributed among 10,162 beneficiaries under categories including retail loans, Mudra Yojana, PM SVANidhi, PMEGP, PM Vishwakarma, MSME loans, Kisan Credit Card schemes, self-help groups and joint liability groups.

J K Sinha, PNB Executive Director M Paramasivam and senior officials of State Bank of India, UCO Bank and other banks were also present.

As part of corporate social responsibility initiatives, PNB and Union Bank of India handed over one ambulance each to the Chief Medical Officer of West Tripura district.

State Bank of India provided financial assistance of Rs 36.28 lakh from its CSR fund for the modernisation and installation of life-support equipment in 20 ambulances, officials said.

UCO Bank also sanctioned Rs 24.56 lakh from its CSR fund for another ambulance for district health authorities.

Officials said NABARD approved a grant of Rs 15.06 lakh to the Central Institute of Petrochemicals Engineering and Technology for training rural youth in plastic technology.

During the programme, dignitaries virtually inaugurated a new PNB ATM at Pecharthal in Unakoti district, a new Union Bank branch at Shantirbazar and new SBI customer service points.

Addressing the gathering, Nagaraju said the large-scale credit distribution would help small traders, self-help groups and young people become financially self-reliant and contribute to the state economy.

Sinha said the programme would help expand banking and financial services in remote areas through new branches, ATMs and customer service points.

Officials added that a similar programme was also organised earlier in the day at Rajarshi Hall in Udaipur, where sanction letters for loans worth Rs 105.40 crore were distributed among 4,577 beneficiaries.

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