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Informist, Tuesday, Aug. 18, 2026

NEW DELHI – The outstanding loans of regional rural banks rose 10.3% in financial year 2025-26 (Apr-Mar) to INR 5.78 trillion, the finance ministry said in a release Tuesday. Priority sector lending made up 91.7% of the average adjusted net bank credit in the financial year, well above the regulatory requirement of 75%.

Loans to agriculture and allied activities amounted to INR 3.78 trillion, while credit to micro-, small- and medium-enterprises was INR 669.78 billion, the ministry said. Over 95% of the MSME lending was to micro enterprises, with the services sector making up the largest share, followed by manufacturing. Outstanding gross loans to weaker sections of society was INR 3.49 trillion.

"During FY 2025–26, Regional Rural Banks (RRBs) have 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)," the release said. "RRBs thus remain key pillars in advancing financial inclusion, strengthening rural livelihoods and supporting the Government of India's vision of inclusive and balanced economic growth."  End

Reported by Aaryan Khanna

Edited by Deepshikha Bhardwaj

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