The study examines the recovery Efficiency and Asset Soundness of Regional Rural Banks (RRBs) in Uttar Pradesh through an empirical Analysis covering the period 2019 – 2025. RRBs help to promote financial inclusion and supporting priority sector lending, predominantly in rural and semi-urban areas. However, the rising level of non-performing assets (NPAs) has led to concerns about their financial stability and operational efficiency. The present research aims to evaluate the recovery trends, assess asset eminence and examine the interrelationship between NPAs and recovery efficiency of selected Regional Rural Banks in Uttar Pradesh. The research is based on secondary data extracted from the annual reports of Regional Rural Banks, RBI publications, and other authenticated financial sources. Statistical tools such as trend analysis, CAGR (compound Annual Growth Rate), Ration analysis, and Anova Test have been employed to examine inter-bank variations and performance patterns. The findings indicate significant differences in recovery performance among the selected RRBs.

The outcomes suggest that strengthening credit appraisal systems, improving monitoring mechanisms, and adopting technology-driven recovery strategies can enhance the asset quality of RRBs. Policy interventions and institutional reforms are also necessary to ensure the long-term sustainability of these banks. The study contributes to the existing literature by providing a comparative and analytical perspective on RRB performance in a key Indian state.