Udaipur, August 22, 2024: Union Finance Minister Smt. Nirmala Sitharaman chaired a significant review meeting today in Udaipur to evaluate the performance of nine Regional Rural Banks (RRBs) operating across Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, and Rajasthan. The meeting, attended by senior officials including Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), representatives from RBI, SIDBI, and NABARD, focused on various key aspects of RRB operations.
During the review, Smt. Sitharaman emphasized the crucial role of RRBs in bolstering the rural economy. She urged these institutions to heighten awareness about Government schemes, particularly in aspirational districts. The Finance Minister specifically highlighted the underutilization of the MUDRA scheme in Bundelkhand and called for targeted meetings by the State Level Bankers’ Committee (SLBC) to address this issue.
Smt. Sitharaman also underscored the potential benefits of the PM Surya Ghar Muft Bijli Yojana scheme in Gujarat and Rajasthan, urging RRBs to increase credit provision under this scheme. She further stressed the importance of the One District One Product (ODOP) programme and the PM Vishwakarma scheme, directing RRBs to explore and provide credit for identified trades under these initiatives.
The Finance Minister noted significant improvements in the RRB sector, with the Consolidated Capital to Risk (Weighted) Assets Ratio (CRAR) rising from 7.8% in FY 2021 to 13.7% in FY 2024. Profits have surged from a loss of Rs. 41 crore to a net profit of Rs. 2,018 crore over the same period, while the Gross Non-Performing Assets (GNPA) ratio remains relatively low at 3.9%.
Smt. Sitharaman commended the progress in technological upgradation among the nine RRBs of the Western Central region since 2022, encouraging continued advancements. She also highlighted the need for RRBs to leverage their strong CASA ratios to extend more credit and called for RBI intervention to resolve pending dues from State Governments.
In her address, the Finance Minister urged RRBs to enhance their customer service and utilize their local presence to improve performance. She acknowledged the significant role of Sponsor Banks in providing technical support, sharing best practices, and ensuring resource availability for RRBs.
Looking ahead, Smt. Sitharaman stressed the importance of maintaining asset quality, expanding digital services, and ensuring strong corporate governance as key areas for future focus.
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