Regional rural banks register 2206 crore net loss in FY2020

As of 31 March 2020, 45 RRBs are in operation in 685 districts of the country. These RRBs are in 26 states and three union territories.

  • Minor decline in gross RRB of 45 RRBs
  • Average business growth was 8.6 percent

The country’s regional rural banks have a net loss of Rs 2206 crore in FY 2020. While the net loss in FY 2019 was 652 crores. This has been revealed by data published by the National Bank for Agriculture and Rural Development (NABARD).

Profits to 26 banks, losses to 19

As of 31 March 2020, 45 RRBs are in operation in 685 districts of the country. These RRBs are in 26 states and three union territories. These RRBs are being sponsored by 15 commercial banks and have a network of 21850 branches. According to data uploaded by RRB on Ensure portal, 26 RRBs have made a profit of Rs 2203 crore in FY 2019-20. While 19 banks incurred a loss of Rs 4409 crore. Thus the net profit of all RRBs has been Rs 2206 crores.

Slight drop in gross NPA

There has been a slight decline in RRB’s gross non-performing assets (NPAs) in the last financial year. RRB’s gross NPA stood at 10.4% of gross loan outstanding for the financial year ended 31 March 2020. Whereas in FY 2019 it was 10.8 per cent. As of 31 March 2020, 18 out of 45 RRBs had gross NPAs of over 10 per cent.

8.6 percent growth in business

According to the data, the average growth of RRB business in FY 2020 has been 8.6 per cent. In FY19, business growth was 9.5 per cent. The total turnover of all RRBs in the last financial year has been Rs 7.77 lakh crore. In FY 2019-20, RRB deposits and advances increased by 10.2 per cent and 9.5 per cent respectively. The gross outstanding loan during this period stood at Rs 2.98 lakh crore.

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