RRB NET LOSS OVER 2206 CRORES | 2020

 RRB NET LOSS OVER 2206 CRORES 

Regional Rural Banks (RRBs) together reported a net loss of Rs 2,206 crore for the financial year ended March 31. According to NABARD figures, 26 RRBs made a profit of Rs 2,203 crore during the year, while 19 RRBs incurred a combined loss of Rs 4,409 crore. 

The loss for the 2018-19 financial year was Rs 652 crore. As of March 31 this year, there were 45 RRBs operating in 685 districts in 26 states and union territories.

Operating under the sponsorship of 15 commercial banks, these RRBs have 21,850 branches. Their arrears fell to 10.4 percent in the last financial year from 10.8 percent in the previous year. 

When it comes to asset classification, the standard is 89.6 percent, the non-standard is 3.6 percent, the suspicious is 6.5 percent and the risky is 0.3 percent.

The gross arrears of 18 RRBs are above 10 percent. The gross business growth of RRBs was 8.6 percent. The previous year's growth rate was 9.5 percent.

The total business they operated was Rs 7.77 lakh crore. Deposits grew by 10.2 percent and loans by 9.5 percent.

The share of priority sector debt is 90.6 percent (Rs 2.70 lakh crore). Of this, 70 percent is agricultural loans and 12 percent is MA loans.

The risk-to-asset ratio (CRAR) is less than 9 percent of the capital of 17 RRBs out of a total of 45 RRBs. 6 RRBs have negative CRAR.