The present study evaluates the financial performance of Regional Rural Banks (RRBs) in Maharashtra using a multi-dimensional analytical framework. The study utilizes secondary data for the period 2018–19 to 2023– 24 and applies statistical tools such as ratio analysis, trend analysis, correlation, and regression to assess financial efficiency and stability.

Empirical results indicate a statistically significant positive correlation between deposits, advances, and profitability (r > 0.99), suggesting a strong interdependence among core banking variables. Regression analysis demonstrates that deposits act as a key determinant of advances (β ≈ 0.83), highlighting the critical role of resource mobilization in credit expansion. Furthermore, a declining trend in NPAs indicates improvements in asset quality and risk management practices.

Despite these advancements, the study identifies structural constraints such as high exposure to agricultural credit, operational inefficiencies, and limited technological adoption. The findings suggest that policy interventions focusing on digital transformation, diversification of loan portfolios, and strengthening of credit appraisal mechanisms are essential for enhancing the long-term sustainability of RRBs.