There are 56 RRBs in the country with a combined balance sheet size
of Rs4.7 trillion. Of these, 50 are in profit, according to financial
statements of RRBs for March 2017, released by National Bank For
Agriculture and Rural Development (NABARD).
RRBs operating through about 21,200 branches witnessed 17% rise in net profit to Rs2,950 crore in 2016-17. Their loans and advances outstanding under various schemes rose 15% to Rs3.5 trillion as of March 2017.
These banks were formed under the RRB Act, 1976 with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas. The Act was amended in 2015 whereby such banks were permitted to raise capital from sources other than Centre, states and sponsor banks.
Currently, the Centre holds 50% in RRBs, while 35% and 15% are with concerned sponsor banks and state governments, respectively.
In order to improve the financial health of RRBs, the government initiated consolidation of RRBs in a phased manner in 2005. The number of RRBs came down to 133 in 2006 from 196 at the end of March 2005. It further came down to 105 and subsequently to 82 at the end of March 2012 and subsequently to 56
RRBs operating through about 21,200 branches witnessed 17% rise in net profit to Rs2,950 crore in 2016-17. Their loans and advances outstanding under various schemes rose 15% to Rs3.5 trillion as of March 2017.
These banks were formed under the RRB Act, 1976 with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas. The Act was amended in 2015 whereby such banks were permitted to raise capital from sources other than Centre, states and sponsor banks.
Currently, the Centre holds 50% in RRBs, while 35% and 15% are with concerned sponsor banks and state governments, respectively.
In order to improve the financial health of RRBs, the government initiated consolidation of RRBs in a phased manner in 2005. The number of RRBs came down to 133 in 2006 from 196 at the end of March 2005. It further came down to 105 and subsequently to 82 at the end of March 2012 and subsequently to 56
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