The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, has held a meeting to review the performance of nine Regional Rural Banks (RRBs) in Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, and Rajasthan.
The meeting focused on business performance, upgrading digital technology services, fostering business growth in MSME clusters, and deepening financial inclusion in rural areas. The Minister urged RRBs to generate awareness of Government schemes, especially in aspirational districts, and directed the State Level Bankers’ Committee (SLBC) to hold specific meetings with State Government officials, Sponsor Banks, and RRBs to improve the performance of MUDRA scheme and other financial inclusion schemes in the region and aspirational districts.
The Minister also highlighted the natural potential of the PM Surya Ghar Muft Bijli Yojana scheme in Gujarat and Rajasthan, urging RRBs to generate awareness and provide credit under the scheme. The One District One Product (ODOP) programme was also highlighted to increase credit penetration by RRBs. RRBs were also directed to identify potential trades under the PM Vishwakarma scheme in their areas of operation to provide credit.
The Consolidated Capital to Risk (Weighted) Assets Ratio (CRAR) of RRBs increased from 7.8% in FY 2021 to 13.7% in FY 2024, and profitability improved from losses of Rs. 41 crore in FY 2021 to net profit of Rs. 2,018 crore in FY 2024. The Minister also urged RRBs to leverage their healthy CASA ratio to disseminate more credit and urged the intervention of RBI in resolving pending dues to RRBs from State Governments.
Smt. Sitharaman also stressed the importance of active outreach by RRB branches located in MSME clusters to ensure credit to small and micro enterprises. He also highlighted the need for continued focus on maintaining asset quality, expanding digital services, and ensuring robust corporate governance.
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Source: PIB
