A regional review meeting of North Eastern Regional Rural Banks was held in Agartala under the chairmanship of the Secretary, Department of Financial Services and attended by chairpersons of seven RRBs, senior public sector bank officials and NABARD representatives. The meeting reviewed business performance and implementation of central and state government schemes by the seven RRBs in the region. The Secretary emphasised the role of RRBs in supporting the rural economy, noting their rural presence and public trust, and praised improvements in profits, reductions in non-performing assets and loan diversification.

North Eastern RRBs have expanded their footprint, with over 887 branches across 105 districts in seven states, and more than 92 per cent of branches in rural and semi-urban areas. They reported a provisional consolidated net profit of Rs 5.6 billion (bn) in the financial year 2025-26, a year-on-year growth of 34 per cent, reflecting operational improvements and better credit management. The gross non-performing assets ratio declined to 4.9 per cent, the lowest in a decade, indicating stronger asset quality. Participants said the improved metrics provide a platform for service expansion.

The Secretary said RRBs must strengthen and expand digital banking to meet future challenges, and he highlighted the role of sponsor banks in providing technical support and IT resources. RRBs were urged to ensure financial inclusion of the still unbanked and under-served by expanding business correspondent networks and identifying suitable land for brick and mortar branches. The meeting discussed targeted lending to individuals willing to construct branch premises to improve physical accessibility. Officials agreed that combining technology and branch expansion would enhance outreach.

Senior representatives from sponsor banks and NABARD reviewed action plans to support RRBs through knowledge sharing, capacity building and IT facilitation to sustain gains. The regional review will be followed by monitoring of implementation and further support measures to maintain profitability while continuing to reduce non-performing assets. Officials said continued emphasis on digital and physical outreach is essential to deepen financial inclusion in the North Eastern rural economy and coordinated action is needed to consolidate progress.