Itanagar: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired a significant meeting today in Itanagar to assess the performance of seven Regional Rural Banks (RRBs) serving the Northeastern states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura.
The meeting was attended by M. Nagaraju, Secretary of the Department of Financial Services (DFS), along with Chairpersons of RRBs and their sponsor banks, including the Chairman of the State Bank of India (SBI) and the Managing Director of Punjab National Bank (PNB). Senior officials from the DFS, representatives from the Reserve Bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), and senior officers from the seven states were also present.
During the review, Sitharaman was informed about the notable improvements in the financial performance of the RRBs in the Northeast, as well as their technological advancements since regular reviews began in 2022. The Consolidated Capital to Risk-weighted Assets Ratio (CRAR) has reached a healthy 15% for FY 2024, while profitability has surged from losses of ₹11 crore in FY 2023 to a net profit of ₹205 crore in FY 2024. Additionally, the Gross Non-Performing Assets (GNPA) ratio has significantly improved, dropping from 15.6% in FY 2022 to 7.3% in FY 2024.
Recognizing the crucial role of RRBs in bolstering the rural economy, the Finance Minister urged these banks, with the active support of their sponsor banks, to enhance credit disbursement under various Government of India flagship schemes, including MUDRA and PM Vishwakarma. She emphasized the importance of focusing on credit for agriculture, horticulture, and allied activities such as piggery, goatery, sericulture, and fisheries. Additionally, she directed NABARD to promote Farmer Producer Organizations (FPOs) in the Northeast region.
Sitharaman also called for special State Level Bankers’ Committees (SLBCs) meetings involving RRBs to identify potential opportunities in horticulture, floriculture, sericulture, and animal husbandry within the Northeastern states. She highlighted the need to address land record availability for extending agricultural credit and encouraged states to ensure the provision of mobile veterinary units in each district.
Furthermore, the Finance Minister stressed that every eligible individual in the Northeast should be covered under the Pradhan Mantri Jan Dhan Yojana (PMJDY). She directed the DFS to coordinate with the Ministry of Development of North Eastern Region (DoNER) and the North Eastern Council (NEC) to explore credit opportunities for One District One Product (ODOP) vendors in the states.
In her closing remarks, Sitharaman advised all RRBs to create suitable products tailored for Micro, Small, and Medium Enterprises (MSMEs), leveraging their personal connections and local insights to enhance outreach. She also instructed RRBs, with support from sponsor banks and NABARD, to establish new banking touchpoints in underserved areas, particularly in Nagaland and Arunachal Pradesh.
