Mint Explainer | How regional rural banks lowered bad loans and what’s next for them?
Regional rural banks (RRBs) are emerging from a prolonged period of financial stress with stronger capital buffers, lower bad loans and improved profitability. While RRBs’ aggregate capital to risk-weighted assets ratio (CRAR) stood at 15% in FY2025-26, their gross non-performing assets (GNPA) fell to an all-time low of 5.3%. RRBs also reported a record net profit of ₹10,176 crore, with total business crossing ₹13.5 trillion.
