Money & Banking

Two regional rural banks record over ₹150-cr profit in FY17

AJ Vinayak Mangaluru | Updated on January 09, 2018 Published on August 22, 2017

RRB chart

Only seven of the 56 RRBs suffer losses during the year

Of the 56 regional rural banks (RRBs) in the country, two notched up net profit of over ₹150 crore each during 2016-17. These are among the 49 RRBs that recorded a profit in 2016-17. Seven RRBs suffered losses during the period.

According to the Reserve Bank of India’s ‘Report on Trend and Progress of Banking in India’, 45 of the 56 RRBs earned profits without carrying any accumulated losses during 2015-16.

As the RBI is yet to come out with the 2016-17 edition of the report, BusinessLine put together data from annual reports and balance sheets of 37 RRBs (wherever available) to get a picture of their performance during the year.

As for 19 RRBs, data was taken from the figures compiled by All India Regional Rural Bank Employees’ Association.

The three RRBs promoted by Syndicate Bank — Prathama Bank, Karnataka Vikas Grameena Bank, and Andhra Pragathi Grameena Bank — improved their net profit over 2015-16 and emerged in the top league of profit-making RRBs during 2016-17.

These RRBs covered 18 districts in three States with a network of 1,563 branches.

In fact, Karnataka Vikas Grameena Bank and Andhra Pragathi Grameena Bank recorded net profit of more than ₹150 crore during 2016-17.

Baroda Rajasthan Kshetriya Gramin Bank (sponsored by Bank of Baroda), Sarva Haryana Gramin Bank (Punjab National Bank) and Chhattisgarh Rajya Gramin Bank (State Bank of India) crossed the ₹100-crore mark in net profit during 2016-17. Uttar Bihar Gramin Bank (Central Bank of India), Jammu and Kashmir Grameen Bank (Jammu and Kashmir Bank), and Sutlej Gramin Bank (Punjab and Sind Bank) recorded losses during the year.

At the end-March 2017, RRBs had 21,398 branches spread across 676 districts and 28 States.

Published on August 22, 2017
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