India, March 26 -- Regional Rural Banks (RRBs) achieved a historic net profit of Rs 7,571 crore in FY 2023-24, reflecting significant improvements in key financial indicators. The total balance sheet size grew from Rs 7.04 lakh crore in FY 2021-22 to Rs 8.4 lakh crore in FY 2023-24, while Net NPAs declined from 4.7% to 2.4%. The Credit to Deposit (CD) Ratio also saw a notable rise from 64.5% to 71.4% during the same period.
The government has been actively reviewing the financial performance of RRBs, focusing on parameters like CRAR, deposits, advances, and technology upgradation. Emphasis has also been placed on diversifying loan portfolios toward MSMEs, agri-allied sectors, and retail. Additionally, RRBs continue to play a crucial role i...