Gross loans outstanding of RRBs rises 10.3 pc to Rs 5.78 lakh crore in FY26: Govt

New Delhi, Aug 18 (IANS) Gross loans outstanding of Regional Rural Banks (RRBs) rose 10.3 per cent year-on-year (YoY) to Rs 5.78 lakh crore in FY 2025–26 from Rs 5.24 lakh crore in the previous financial year, while their average achievement under the Reserve Bank of India’s Priority Sector Lending (PSL) framework reached 91.7 per cent of Adjusted Net Bank Credit (ANBC), the government said on Tuesday.

According to the Ministry of Finance, RRBs continued to strengthen their role in rural economic development and financial inclusion during the year by expanding credit delivery and maintaining a strong focus on priority sectors.

The average achievement against the overall PSL target of 75 per cent stood at 91.7 per cent of ANBC. Almost all RRBs achieved the overall PSL target, reflecting their continued focus on providing institutional credit to priority sectors and underserved sections of the rural economy.

Agriculture and allied activities remained the largest component of the RRB credit portfolio, with outstanding credit of Rs 3.78 lakh crore, accounting for 77 per cent of total PSL. Farm credit constituted nearly 98 per cent of agricultural lending, supporting crop cultivation, allied activities and investment in the rural economy.

Credit to the micro, small and medium enterprises (MSME) sector stood at Rs 66,978 crore, accounting for 13.6 per cent of total PSL. The ministry said RRBs continued to play an important role in supporting rural entrepreneurship and employment generation.

More than 95 per cent of MSME lending was directed towards micro enterprises, reflecting the focus of RRBs on first-generation entrepreneurs, self-employed individuals, artisans and small business units in rural and semi-urban areas. Within the MSME segment, services accounted for the largest share, followed by manufacturing and Khadi and Village Industries.

RRBs also extended Rs 3.49 lakh crore in credit to weaker sections, reinforcing their role in promoting financial inclusion and equitable access to institutional finance.

The government said lending for housing, education, renewable energy and social infrastructure also contributed to inclusive and sustainable development by supporting human capital formation, household asset creation, clean energy adoption and local infrastructure.

–IANS

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