RRBs Record Profit: Rs 7,571 Cr in FY24 - Govt

New Delhi, Mar 25 (PTI) Regional Rural Banks (RRBs) have earned a record profit of Rs 7,571 crore during 2023-24, Parliament was informed on Tuesday.

"Financial health of RRBs has improved in the recent years as they have posted highest ever consolidated net profit of Rs 7,571 crore during 2023-24. Also, the RRBs have shown consistent improvement in key financial parameters like CRAR, deposits, advances, NPA, CD ratio etc," Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha.

The key financial parameters of RRBs have improved consistently in past years, he said, adding that the total balance sheet size of RRBs have increased from Rs 7,04,556 crore in 2021-22 to Rs 8,40,080 crore in 2023-24.

Further, the net NPA has declined from 4.7 per cent in 2021-22 to 2.4 per cent in 2023-24, he said.

Also, the credit-to-deposit ratio has increased from 64.5 per cent in 2021-22 to 71.4 per cent in 2023-24, he added.

"The government has also reviewed the progress made by RRBs in deepening financial inclusion in rural and remote areas by reviewing performance on various financial inclusion schemes like Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Atal Pension Yojana etc," he said.

Replying to another question, Chaudhary said the Centre under the Modified Interest Subvention Scheme (MISS) provides interest subvention of 1.5 per cent to banks for providing short-term working capital loans of up to Rs 3 lakh at 7 per cent per annum.

Further, he said, a prompt repayment incentive of 3 per cent is also provided to farmers on timely repayment of loans. Therefore, effective interest rate for farmers is 4 per cent.

In the Union Budget 2025-26, he said, the government has announced to enhance loan limit under the MISS from Rs 3 lakh to Rs 5 lakh for loans taken through the KCC (Kisan Credit Card).

The Jan Samarth portal is a one-stop digital platform for linking 15 government-sponsored loans and subsidies schemes, he said.

It provides a quick and efficient way to apply for loans and obtain approvals based on a digital evaluation of the applicant's data, he said.

Additionally, many banks and financial institutions have developed online platforms and mobile apps for end-to-end digital processing of loan applications, reducing the need for physical paperwork and in-person visits.