Regional Rural Banks (RRBs) grew gross loans outstanding by 10.3% in 2025-26, with the credit stock rising from around Rs 5.24 thousand crore in 2024-25 to over Rs 5.78 thousand crore in 2025-26, according to the Ministry of Finance as reported by News on AIR.
The Ministry of Finance said RRBs recorded strong growth in credit delivery during 2025-26 and continued to strengthen their role in promoting rural economic development and financial inclusion by expanding credit delivery and maintaining a strong focus on Priority Sector Lending (PSL).
Credit growth in 2025-26
The Ministry's figures, carried by News on AIR, compare the RRB loan book at the end of two fiscal years:
| Metric | 2024-25 | 2025-26 | Change |
|---|---|---|---|
| Gross loans outstanding | around Rs 5.24 thousand crore | over Rs 5.78 thousand crore | +10.3% |
| Credit extended to weaker sections | — | Rs 3.49 lakh crore | — |
Key data points from the Ministry of Finance, as reported by News on AIR:
- Gross loans outstanding grew 10.3% during 2025-26.
- The loan book rose from around Rs 5.24 thousand crore to over Rs 5.78 thousand crore.
- Almost all RRBs achieved the overall PSL target.
- RRBs extended credit of Rs 3.49 lakh crore to weaker sections.
Almost all RRBs achieved the overall PSL target, according to the Ministry of Finance, reflecting the banks' focus on supporting priority sectors and advancing financial inclusion.
Priority Sector Lending and weaker sections
The Ministry of Finance said the near-universal PSL target achievement demonstrates the RRBs' continued attention to priority sectors and financial inclusion. It also noted that RRBs extended credit of Rs 3.49 lakh crore to weaker sections, describing the figure as a reaffirmation of their commitment to financial inclusion and equitable access to institutional credit.
Institutional credit indicators for finance executives
For CFOs, treasury directors and trade finance professionals monitoring rural demand and agricultural supply chains, the Ministry's data provides an aggregate measure of credit delivery through the RRB network. The 10.3% growth rate, together with the Rs 3.49 lakh crore in credit extended to weaker sections, gives a two-part view of how the loan book expanded: total outstanding loans moved from around Rs 5.24 thousand crore to over Rs 5.78 thousand crore, while a substantial portion of lending continued to flow to weaker sections.
The Ministry's statement also confirms that PSL compliance remained widespread, with almost all RRBs meeting the overall target. That compliance reading is relevant to finance teams tracking the distribution of institutional credit, because it indicates the credit expansion was accompanied by continued allocation toward priority sectors.
Finance executives can use the 10.3% loans-outstanding growth as a point of comparison against prior fiscal years, and the Rs 3.49 lakh crore weaker-sections figure as a reference for the portion of RRB credit directed to lower-income borrowers. The Ministry attributed the growth to expanded credit delivery, meaning the aggregate loan stock rose while the banks maintained their priority-sector focus.
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