Despite narrow interest spread, high transaction cost, poor recovery and low business volume, RRBs, which incurred successive losses to the tune of Rs 424.94 crore and Rs 809.69 crore in 1995-96 and 1996-97, showed "surprisingly impressive profit" in the last fiscal, the All India Gramin Bank Workers Organisation (Aigbwo) said in a statement here today.

With the exception of the eastern region, where 27 out of 50 working unites are still running in losses, RRBs functioning in the other states have showed impressive growth in profit.

All the units operative in Himachal Pradesh, Haryana, Punjab, Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, Karnataka, Kerala and Tamil Nadu have posted profit, Aigbwo said.

Earlier, as part of the restructuring process, Centre had provided Rs 773.57 croreduring the consecutive years from 1994-95 for clearing the balance-sheet of this chronically loss making sector.

In an effort to revamp the rural banking network comprising 14,500 branches of 196 RRBs, Aigbwo has proposed the government to constitute a National Rural Bank of India (NRBI) by amalgamating all the 196 RRBs.