Financial Performance and Balance Sheet Dynamics of Regional Rural Banks in India: An Analysis Based on RBI’s Trend and Progress of Banking Report 2024–25

Abstract

Regional Rural Banks (RRBs) play a pivotal role in promoting agricultural development, rural livelihoods, and financial inclusion in India. With an extensive branch network concentrated in rural and semi-urban areas, RRBs serve as key financial intermediaries in meeting the diverse credit requirements of the agrarian and rural population. The effectiveness of rural credit delivery in India largely depends on the financial soundness and operational performance of these institutions. In this context, the present study aims to analyze the consolidated balance sheet position and various financial performance indicators of Regional Rural Banks in India using secondary data sourced from the Reserve Bank of India’s Report on Trend and Progress of Banking in India, 2024–25. The study examines key balance sheet components and financial indicators to assess the overall financial health and performance trends of RRBs. By providing an analytical overview of assets, liabilities, and performance metrics, the paper highlights the role of RRBs in strengthening the rural banking system and supporting financial inclusion initiatives. The findings of the study offer valuable insights for policymakers, regulators, and stakeholders to enhance the efficiency and sustainability of Regional Rural Banks in India.