New Delhi, March 25 (IANS) The financial health of the Regional Rural Banks (RRBs) has improved in recent years as they have posted the highest-ever consolidated net profit of Rs 7,571 crore during FY 2023-24, the Parliament was informed on Tuesday.
The RRBs have shown consistent improvement in key financial parameters like NPAs, deposits, advances and credit-deposit ratio..
The total balance sheet size of the RRBs has increased from Rs 7,04,556 crore in FY 2021-22 to Rs 8,40,080 crore in FY 2023-24. Further, the Net NPA has declined from 4.7 per cent in FY 2021- 22 to 2.4 per cent in FY 2023-24. Also, the Credit to Deposit Ratio has increased from 64.5 per cent to 71.4 per cent during this period, Minister of State for Finance Pankaj Chaudhary told the Rajya Sabha in a written reply to a question.
He also stated that the government reviews the financial performance of RRBs at the national and regional levels. It also keeps track of the thrust on Micro, Small, and Medium Enterprise (MSME) portfolio and importance on loan diversification towards agri-allied, MSME and retail sectors, the minister said.
The government has also reviewed the progress made by RRBs in deepening financial inclusion in rural and remote areas by reviewing performance on various financial inclusion schemes like Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojana, he further stated.
Established under the Regional Rural Banks Act, 1976, to provide banking services in rural areas and promote rural development, the RRBs are jointly owned by the Central government (50 per cent), the state government (15 per cent), and the sponsoring bank (35 per cent).
The RBI, through the Banking Regulation Act, 1949, sets the overall policy for banking operations and ensures the stability and soundness of the financial system, including the RRBs.
NABARD, under Section 35(6) of the Banking Regulation Act, 1949, is responsible for conducting statutory inspections of the RRBs, the State Cooperative Banks, and the District Central Cooperative Banks.
–IANS
sps/vd
Follow Times Report on Google News , Youtube , Whatsapp , Twitter , Instagram and Pintrest for more updates.