New Delhi, August 18, 2026: Regional Rural Banks (RRBs) recorded strong growth in credit delivery during FY 2025-26, reinforcing their role in promoting rural economic development and financial inclusion. Gross loans outstanding of RRBs increased by 10.3%, rising from ₹5,24,163 crore in FY 2024-25 to ₹5,78,349 crore in FY 2025-26.
Their performance under the Reserve Bank of India’s Priority Sector Lending framework also remained robust, with average achievement against the overall PSL target of 75% reaching 91.7% of Adjusted Net Bank Credit (ANBC).
Agriculture and allied activities continued to dominate the RRB credit portfolio, with outstanding credit of ₹3.78 lakh crore, accounting for 77% of total Priority Sector Lending. Farm credit represented nearly 98% of agricultural lending, supporting crop cultivation, allied activities and investment in the rural economy.
The strong flow of institutional credit highlights the continued importance of RRBs in meeting the financing requirements of farmers and rural communities.
RRBs also maintained a strong focus on the MSME sector, with credit outstanding reaching ₹66,978 crore, or 13.6% of total PSL. More than 95% of MSME lending was directed towards micro enterprises, supporting first-generation entrepreneurs, self-employed individuals, artisans and small businesses in rural and semi-urban areas.
The services sector accounted for the largest share of MSME lending, followed by manufacturing and Khadi & Village Industries.
Credit delivery to weaker sections also remained significant, with RRBs extending ₹3.49 lakh crore to these segments during the year. Lending towards housing, education, renewable energy and social infrastructure further supported inclusive and sustainable development. Overall, the performance of RRBs in FY 2025-26 reflects sustained expansion in rural credit and their continued contribution to farmers, micro-enterprises and underserved communities, strengthening financial inclusion and balanced economic growth.