Top 10 Regional Rural Banks (RRBs) in India 2024

Apr 2nd 2024
Finance
List of 10 Best Regional Rural Banks (RRBs) in India 2024

Established on the recommendations of the Narasimhan Working Group in 1975, Regional Rural Banks (RRBs) were conceived as a unique category of regionally focused rural banks. These institutions successfully blend the “local touch and insight into rural challenges”, a hallmark of cooperatives, with the professionalism and extensive resource base, often associated with commercial banks.

The primary objective of establishing Regional Rural Banks (RRBs) in India was to afford individuals residing in rural regions access to essential banking services and information. This article presents a comprehensive list of the 43 Regional Rural Banks operating across India in 2024. 

What is a Regional Rural Bank?

RRBs or Regional Rural Banks are financial institutions tasked with providing sufficient credit and a range of banking services for agriculture and other rural sectors. Each RRB functions within a specific local area as delineated by the Government. Combining the attributes of cooperatives, by addressing issues prevalent in rural areas and those of commercial banks, through the mobilization of financial resources, RRBs play a critical role in rural development. 

What are the Objectives of Regional Rural Banks (RRBs)?

The main objective of Regional Rural Banks (RRBs) is to foster the development of the rural economy by offering credit and other facilities that support agricultural and productive activities in rural areas. They extend these facilities to small and marginal farmers, agricultural labourers, rural artisans and other small entrepreneurs operating in the rural locales. 

To summarize, the objectives of RRBs have been listed below: 

  • Offer loans to disadvantaged communities.
  • Establish bank branches in rural regions.
  • Protect rural residents from predatory lenders.
  • Promote banking awareness among rural populations and foster savings for rural economic growth.
  • Boost employment prospects by stimulating rural trade and commerce.
  • Support entrepreneurship in rural communities.
  • Address the needs of underserved areas not reached by other government initiatives.
  • Develop underprivileged regions to reduce economic disparities between areas.
  • Create more job opportunities through the promotion of trade and commerce in rural zones.

How are Regional Rural Banks (RRBs) Different from Commercial Banks?

The founding principle of Regional Rural Banks (RRBs) was to foster development in areas where the presence and services of commercial banks and cooperatives were markedly inadequate. Unlike commercial banks, which operate on a much broader scale, RRBs focus their operations within a specific territory that encompasses one or two adjacent districts. A vital objective set for RRBs is to ensure that their operational costs remain lower than those of commercial banks. 

Who Owns Regional Rural Banks (RRBs)?

The ownership structure of Regional Rural Banks (RRBs) is delineated through a predetermined distribution of equity shares among three principal entities: the Central Government, the State Government and the Sponsor Bank. 

Owner Stake
Central Government 50%
Sponsor Bank 35%
State Government 15%

Regional Rural Banks are predominantly owned by the Government of India, with the Central Government holding the majority share of capital. 

Best Regional Rural Banks in India in 2024 (In Terms of Net Profit in FY 2022-23)

The table below contains the list of best regional rural banks (RRBs) in India that are currently operational based on their FY 2022-23 net profit numbers. 

1. Andhra Pradesh Grameena Vikas Bank - ₹ 1,04,666.71

Andhra Pradesh Grameena Vikas Bank (APGVB), a Regional Rural Bank (RRB) was established in 2006 through an act of Parliament by amalgamating the following entities:

  • Manjeera Grameena Bank (Medak)
  • Sangameshwara Grameena Bank (Mahabubnagar)
  • Kakatiya Grameena Bank (Warangal)
  • Nagarjuna Grameena Bank (Khammam & Nalgonda)
  • Sri Visakha Grameena Bank (Visakhapatnam,Vizianagaram & Srikakulam)

Located in Hanamkonda, Warangal (Urban District) and sponsored by the State Bank of India, the Andhra Pradesh Grameena Vikas Bank (APGVB) serves 21 districts in the Telangana state and 3 districts in Andhra Pradesh. With a network of 771 branches and 2804 Bank Mitra Points spanning across these 2 states, APGVB stands as a leading entity in catering to the banking needs of rural communities in the Telangana state. Notably, 500 of its branches, constituting 64% of the total, are strategically located in rural areas, underscoring the bank’s dedication to enhancing financial inclusion and supporting the rural populace. 

2, Andhra Pragathi Grameena Bank - ₹ 59,515.52

The Andhra Pragathi Grameena Bank was established on 1 June 2006 through the amalgamation of Rayalaseema Grameena Bank, Sri Anantha Grameena Bank and Pinakini Grameena Bank following a government of India notification dated 1 June 2006. This bank operates under the auspices of the Regional Rural Banks Act of 1976.

The bank’s head office is in Kadapa, overseeing operations across 5 districts: Anantapuramu, YSR Kadapa, Kurnool, SPSR Nellore and Prakasam. With 8 regional offices positioned strategically at the district headquarters - including Kadiri in Anantapuramu, Rajampeta in YSR district and Nandyal in Kurnool - the bank offers extensive banking services through a network of 552 branches. 

The bank primarily caters to the needs of the rural poor while also serving other sectors. It plays a pivotal role in the economic development of its operational area by reaching out to people in the countryside. 

3. Baroda Rajasthan Kshetriya Gramin Bank - ₹ 56,044.88

Established by the Central Government through the exercise of powers conferred by subsection (1) of section 23A of the Regional Rural Bank Act 1976 (21 of 1976), a significant merger took place on 1 January 2013. This amalgamation brought together 3 Regional Rural Banks - Rajasthan Gramin Bank, Hadoti Gramin Bank and Baroda Rajasthan Gramin Bank, which were initially sponsored by Punjab National Bank, Central Bank of India and Bank of Baroda. The initiative, sponsored by the Bank of Baroda, marked a pivotal step in consolidating rural banking services under a unified framework.

The bank’s head office is located in Ajmer, with 12 regional offices situated across Sikar, Sawai Madhopur, Neem ka Thana, Kota, Jhunjhunu, Churu, Chittorgarh, Bhilwara, Bharatpur, Baran, Banswara and Alwar. The Bank boasts 880 branches, 1 extension counter and 5518 active Bank Mitras achieving a total business of 46,627 crore rupees as of 31 March 2023. Furthermore, all the branches are integrated under the core banking solution.

4. Telangana Grameena Bank - ₹ 44,936.93

The Telangana Grameena Bank was formed through the merger of four Regional Rural Banks (RRBs) sponsored by the State Bank of Hyderabad - Golconda Grameena Bank (Ranga Reddy), Sri Rama Grameena Ban (Nizamabad), Sri Satavahana Grameena Bank (Karimnagar) and Sri Saraswati Grameena Bank (Adilabad).

In 2014, the government of India renamed the “Deccan Grameena Bank” to “Telangana Grameena Bank” extending its operational reach across the districts of Adilabad, Karimnagar, Nizamabad, Rangareddy, Hyderabad, Warangal, Khammam, Nalgonda, Mahabubnagar, and Medak in the state of Telangana. Presently the bank is operational in the initially mentioned 5 districts only - Hyderabad, Rangareddy, Nizamabad, Karimnagar and Adilabad - due to the ongoing process of transferring business operations for the remaining 5 districts from the Andhra Pradesh Grameena Vikas Bank.

Following the amalgamation of the Associate Banks with the State Bank, the sponsor bank transitioned from the State Bank of Hyderabad to the State Bank of India. The authorised share capital of the bank currently stands at 2,000 crore rupees. The paid-up capital amounts to 18.07 crore rupees, with contributions from the Government of India, the sponsor bank (SBI) and the Government of Telangana in a proportion mentioned above. 

5. Tamil Nadu Grama Bank - ₹ 41,827.74

The Tamil Nadu Grama Bank (TNGB) epitomizes financial empowerment across Tamil Nadu’s rural settings. Founded with the noble mission of elevating the socioeconomic conditions of its communities, TNGB proudly situates its headquarters in the bustling city of Salem, a place deeply imbued with the rich cultural legacy of Tamil Nadu. 

As a distinguished institution, this entity embodies a harmonious partnership between the central and state governments, exemplifying synergy in action. Sponsored by the esteemed Indian Bank, the TNGB operates under the auspices of the Ministry of Finance, Government of India, reflecting a steadfast commitment to fiscal responsibility and regulatory compliance. 

The origin of Tamil Nadu Grama Bank marks a significant milestone in India’s banking history on 1 April 2019 through the merger of the erstwhile Pallavan Grama Bank and Pandyan Grama Bank. The Government of India decreed this transformation. This historic amalgamation consolidated resources and ushered in a new era of banking excellence, committed to serving its customers with renewed energy and efficiency. 

6. Prathama U.P Gramin Bank - ₹ 39,774.90

Prathama U.P Gramin Bank, sponsored by Punjab National Bank, one of India’s leading commercial banks, was established through the amalgamation of 2 Regional Rural Banks (RRBs) - Prathama Gramin Bank in Moradabad and Sarva UP Gramin Bank in Meerut. The bank operates in the entire state of Uttar Pradesh, covering a vast area spanning from east to west. The headquarters of Prathama U.P. Gramin Bank is located in Moradabad. Prathama U.P. Gramin Bank has a wide operational reach, serving 20 districts in total. 

The bank boasts an impressive network of 938 branches spread across 19 districts of Uttar Pradesh. In addition, it is proud to announce that it will soon be opening a new branch in the coveted Haridwar District of Uttarakhand.

7. Kerala Gramin Bank - ₹ 32,460.59

Kerala Gramin Bank is a leading Regional Rural bank in Kerala, boasting extensive rural outreach. Despite being a Regional Rural Bank, Kerala Gramin Bank (KGB) provides all the vital services of a Public Sector Bank (PSB). The bank’s primary objective is to enact targeted initiatives for the overall economic empowerment and progress of the people of Kerala by offering financial support to sectors such as vulnerable sections, housing, micro-credit, education, agriculture, micro, small and medium enterprises and SC/ST communities. 

KGB has established itself as a leader in the banking industry with its 40-year history of providing dedicated and personalized service to its clientele, building upon the legacy of its predecessor RRBs. With a network of 634 branches as of 30 September 2019, it stands as the 2nd largest bank in Kerala, with an extensive reach that spans even the most remote parts of the state. Moreover, KGB boasts the highest “Credit-Deposit” ratio among the major banks in Kerala, reflecting its strong financial performance. In addition, KGB takes pride in surpassing other banks in the state in terms of assisting individuals through the Kisan Credit Card (KCC) and SME (Priority) Schemes.

For the past 40 years, the bank’s predecessor RRBs have successfully built warm relationships with their customers. Now, KGB’s objective is to intensify these relationships and emerge as a strong, vibrant and socially committed “Kerala’s Own Bank”. 

8. Sarva Haryana Gramin Bank - ₹ 27,552.70

Sarva Haryana Gramin Bank, also known as Haryana’s “Apna Bank”, was established on 29 November 2013 under the RRB Act of 1976. It was formed through the merger of Haryana Gramin Bank (PNB-sponsored) and Gurgaon Gramin Bank (Syndicate Bank-sponsored).

SHGB has now become the exclusive Regional Rural Bank in the state, with its headquarters in Rohtak. 

Initially, Haryana Gramin Bank was established on 21st December 2005 through the merger of Haryana Kshetriya Gramin Bank (established on 2 October 1975), Hisar Sirsa Kshetriya Gramin Bank (established in 1984) and Ambala Kurukshetra Gramin Bank (established in 1985). All of these banks were sponsored by the Punjab National Bank (PNB). 

Formerly, Gurgaon Gramin Bank (PNB-sponsored) was formed in 1976 with its headquarters in Gurgaon. The amalgamation was carried out to enhance the operational viability and efficiency of Regional Rural Banks across the country. Consequently, Sarva Haryana Gramin Bank has emerged as one of the strongest RRBs in the nation.

According to the latest update, the bank stands as the largest in the state, boasting an expansive network of 680 branches and approximately 1158 Business Correspondent centres. With a substantial business of over 37,000 crore rupees, serving around 60 lakh satisfied customers, the bank has firmly established itself as a leader in the industry. 

Utilizing the centralized banking solution and offering a wide array of digital banking services, the bank is well-equipped to forge ahead and explore new opportunities. By expanding its business activities and focusing on core areas such as MSME lending, retail, agriculture as well as financial inclusion, deposit and wealth products integrated with digital technology, the bank is set to reach new heights.

9. Saptagiri Grameena Bank - ₹ 26,401.65

The Saptagiri Grameena Bank was established through the amalgamation of 2 esteemed banks - Kanakadurga Grameena Bank (Gudivada - Krishna District) and Venkateswara Grameena Bank (Gudivada - Krishna District). With its headquarters located in Chittoor, Andhra Pradesh, this merger was carried out on 29 June 2006 as directed by the Government of India.

The bank operates in a vast area spanning Chittoor, Krishna, Tirupati, Eluru, NTR and Annamayya districts in the state of Andhra Pradesh. 

The Bank boasts an impressive network of 243 branches, strategically located across a wide range of districts. Among these, 67 branches are situated in the flourishing Chittoor district, 51 branches in the vibrant NTR district, 47 branches in the bustling Tirupati district, 35 branches in the thriving Krishna district, 31 branches in the picturesque Annamayya district and 12 branches in the dynamic Eluru district. These branches are meticulously dispersed to cater to customers from rural, semi-urban and urban areas, with 164 branches serving rural communities, 59 branches catering for semi-urban regions and an additional 20 branches strategically placed in urban areas. 

The Bank’s authorized capital amounts to 2,000 crore rupees which is divided into 200 core shares with a face value of 10 rupees each. As of 31 March 2023, the paid-up capital of the bank stands at 17.77 crore rupees. The share capital is contributed by the Government of India, the government of Andhra Pradesh and Indian Bank in the following manner: 

  • Government of India (50%) - Rs. 8.885 Crores
  • Indian Bank (35%) - Rs. 6.220 Crores
  • Government of Andhra Pradesh (15%) - Rs. 2.665 Crores

10. Chaitanya Godavari Grameena Bank - ₹ 23,234.33

The Ministry of Finance in the Government of India made a significant announcement regarding the merger of Chaitanya Grameena Bank and Godavari Grameena Bank, both of which are sponsored by the Union Bank of India. This strategic merger resulted in the creation of a single, powerful Regional Rural Bank with its distinguished Head office located in Guntur, Andhra Pradesh.

Chaitanya Godavari Grameena Bank is now a thriving institution, effective 1 March 2006. The Chaitanya Godavari Grameena Bank is dedicated to bringing prosperity and abundance by catering to the financial needs of the rural population in Guntur, east Godavari and West Godavari districts. As of 31 March 2022, the bank’s total assets amounted to 11,350 crore rupees. Furthermore, the bank achieved a total revenue of 1,022.58 crore rupees with a net profit of 162.34 crore rupees as of 31 March 2022.

List of All Operational RRBs in India in 2024

In the above section, we discussed those RRBs which are on the top of the list based on their net profit in the statistics from the financial year 2022-23. In this section, we will list out the names of all the regional rural banks that are currently operational in India in 2024: 

Name of the RRB Net Profit in FY 2022-23 (Amount in ₹ Lakh)
Arunachal Pradesh Rural Bank 2,055.42 ₹ 
Assam Gramin Vikash Bank -13,795.82 ₹ 
Dakshin Bihar Gramin Bank -91,837.65 ₹ 
Uttar Bihar Gramin Bank 3,236.58 ₹ 
Chhattisgarh Rajya Gramin Bank 16,724.24 ₹ 
Baroda Gujarat Gramin Bank 4,076.21 ₹ 
Saurashtra Gramin Bank 17,853.26 ₹ 
Himachal Pradesh Gramin Bank 216.56 ₹ 
Ellaquai Dehati Bank -4,151.36 ₹ 
J&K Grameen Bank -5,162.73 ₹ 
Jharkhand Rajya Gramin Bank 9,426.62 ₹ 
Karnataka Gramin Bank 755.95 ₹ 
Karnataka Vikas Grameena Bank 4,025.22 ₹ 
Madhya Pradesh Gramin Bank 16,158.19 ₹ 
Madhyanchal Gramin Bank 7,494.75 ₹ 
Maharashtra Gramin Bank 630.89 ₹ 
Vidharbha Konkan Gramin Bank 1,898.96 ₹ 
Manipur Rural Bank -23.15 ₹ 
Meghalaya Rural Bank 3,775.55 ₹ 
Mizoram Rural Bank 6,519.09 ₹ 
Nagaland Rural Bank 43.47 ₹ 
Odisha Gramya Bank 2,057.72 ₹ 
Utkal Grameen Bank 6,431.10 ₹ 
Puduvai Bharathiyar Grama Bank 1,433.24 ₹ 
Punjab Gramin Bank 15,271.23 ₹ 
Rajasthan Marudhara Gramin Bank 10,037.45 ₹ 
Tripura Gramin Bank 362.34 ₹ 
Aryavart Bank 7,655.34 ₹ 
Baroda UP Bank 11,733.44 ₹ 
Uttarakhand Gramin Bank 4,377.96 ₹ 
Bangiya Gramin Vikash Bank 1,361.61 ₹ 
Paschim Banga Gramin Bank -5,500.83 ₹ 
Uttarbanga Kshetriya Gramin Bank 5,801.09 ₹ 

 

Frequently Asked Questions (FAQs)

Q: When were Regional Rural Banks (RRBs) established?

A: The Regional Rural Banks (RRBs) were established in 1975 per the Ordinance issued on 26th September 1975 as well as the Regional Rural Banks Act of 1976. These institutions were created to foster the growth of the rural economy. 

Q: Which is the largest Regional Rural Bank in India?

A: Kerala Gramin Bank (KGB), headquartered in Malappuram, Kerala, is India’s largest regional rural bank boasting a staggering 20,000 crore rupees business. 

Q: What was the name of the first RRB bank established in India?

A: The first RRB in India was Prathama Bank, headquartered in Moradabad, Uttar Pradesh. It was sponsored by Syndicate Bank, marking the inception of the RRB system in the country.

Q: How many Regional Rural Banks (RRBs) are there in India?

A: Presently, there are a total of 43 functioning RRBs spread across various states of India. These banks cater to the financial needs of rural and semi-urban areas, contributing significantly to rural development.

Q: Who controls the Regional Rural Banks (RRBs)?

A: RRBs are government-owned scheduled commercial banks of India. They operate at the regional level in different states and are controlled and regulated by the Reserve Bank of India (RBI) along with the respective state governments.

Q: Which state in India hosts the highest number of Regional Rural Banks (RRBs)?

A: Uttar Pradesh stands out as the state with the highest number of RRBs in India (36). With its vast rural landscape and diverse demographics, Uttar Pradesh provides fertile ground for the establishment and operation of numerous RRBs, each playing a crucial role in catering to the financial needs of rural communities.

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