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Informist, Monday, Mar. 16, 2026

 

NEW DELHI – Parliament's Standing Committee on Finance has urged the government to support profitable regional rural banks to raise capital through initial public offers. The government should also guide these banks to enforce higher standards of corporate governance, the panel said in its latest report. 

 

Meanwhile, the government has already asked regional rural banks in Haryana, Kerala, and Tamil Nadu, to firm up a plan for IPO. This is part of the government's broader plan to list at least five regional rural banks by March 2027. 

 

The Parliament Committee, in its report, also expressed satisfaction over the finance ministry's move to consolidate 43 regional rural banks into 28 more viable rural banks. The consolidation of these banks was part of the government's 'one state, one regional rural bank' policy. 

 

Regional rural banks reported a consolidated net profit of INR 77.20 billion in Apr–Dec with the gross non-performing asset ratio at a 13-year low of 5.4%. However, the committee noted that the gross NPA level in priority sector education loans was 13.8%. It recommended the banks to actively mitigate these specific sectoral risks by fully leveraging their inclusion in the Credit Guarantee Fund Scheme for Education Loans and aggressively deploying Artificial Intelligence-driven automated Early Warning Signals.  End

 

Reported by Krity Ambey

Edited by Avishek Dutta

 

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