New Delhi, May 6 : The government has urged regional rural banks (RRBs) to leverage their lending in agriculture and allied activities, MSMEs and government-sponsored schemes, with the implementation of the ‘One State-One RRB’ initiative.

M. Nagaraju, Secretary, Department of Financial Services (DFS) reviewed performance of RRBs and progress on amalgamation plan in Mumbai.

The DFS Secretary urged the rural banks to continue to focus on their amalgamation process and long-term sustainability.

RRBs have grown in their reach to more than 22,000 branches, covering 700 districts of the country and more than 92 per cent of its branches are in rural/semi urban areas.

They have recorded consolidated net profit of Rs 7,148 crore in FY 2024-25.

Gross non-performing assets (GNPA) reached a new low of 5.3 per cent, lowest in a decade period.

Nagaraju also asked sponsor banks to guide RRBs in their amalgamation process and provide level-playing field for long-term sustainability.

“Sponsor banks should continue to facilitate technology upgradation in RRBs and to complete integration process adhering to the strict timelines of 30-09-2025,” he said.

He also suggested sponsor banks and RRBs to also address HR-related issues emerging in the process.