Regional rural banks lost Rs 2206 crore in the last financial year

Regional Rural Banks (RRBs) collectively incurred a net loss of Rs 2,206 crore in the last financial year 2019-20. This led to a net loss of Rs 652 crore to RRBs in the previous financial year 2018-19. This information is given in the data published by NABARD. According to the data, 26 RRBs had a profit of Rs 2,203 crore in the last financial year, while 19 had a loss of Rs 4,409 crore. The recently published RRB data by the National Bank for Agriculture and Rural Development (NABARD) is based on data submitted by RRB on the Ensure portal.

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As of March 31, 2020, 45 RRBs were operational in 685 districts in 26 states and three union territories of the country. These RRBs are sponsored by 15 commercial banks and are operating through a network of 21,850 branches. During the fiscal year ended March 31, 2020, the gross non-performing assets (NPAs) of RRBs on total debt declined marginally to 10.4 per cent, from 10.8 per cent a year earlier.

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According to the data, as of 31 March 2020, 18 out of 45 RRBs had a gross NPA of over 10 per cent. On March 31, 2019, 20 out of 53 RRBs had a gross NPA of over 10 percent. According to the data, RRB business grew by 8.6 percent in the last financial year. This led to a growth of 9.5 per cent in the RRB business during the last financial year. The total business of RRBs in the last financial year was Rs 7.77 lakh crore. During this period, RRB deposits grew by 10.2 percent and loans or advances increased by 9.5 percent.

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