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Source: Economic Times

Economic Times
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Banking Sector
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1 min
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18 Aug
Published
Banking Sector
1 min read· Economic Times

RRB gross loans grow 10.3% in FY26; priority-sector share at 91.7%

Regional Rural Banks recorded 10.3% growth in gross loans during FY26, reaching Rs 5,78,349 crore. Priority-sector lending achievement stood at 91.7%, while agriculture and related activities accounted for 77% of credit.

The figures show an expanding loan book at Regional Rural Banks, or RRBs, with lending still heavily concentrated in agriculture. Total gross loans reached about Rs 5.78 lakh crore, putting the reported growth rate in double digits for FY26.

Priority Sector Lending, commonly called PSL, remained a prominent part of the performance reported. The 91.7% achievement figure sits alongside the strong agricultural concentration, although the supplied report does not give a previous-year PSL figure for comparison. It therefore does not establish whether this measure improved or declined.

Agriculture and allied activities made up the largest portion of RRB credit, at 77%. The report also notes that lending to micro, small and medium enterprises focused on micro enterprises. It does not provide a separate amount or growth rate for that segment, so its contribution to overall loan growth cannot be quantified from these details.

The available numbers describe lending scale and composition rather than the full financial picture. Details of profit, loan recovery and asset quality have not been stated. The increase in gross loans should therefore not, by itself, be read as evidence of stronger earnings or better repayment performance.

Source: Economic Times