The Reserve Bank of India (RBI) on 4 March 2016 granted the license to the Capital Local Area Bank Ltd to start operations as a Small Finance Bank (SFB). With this, the bank will become the first SFB in the country to start operations.
Earlier, on 16 September 2015, the RBI granted in-principal approval to 10 entities, including the Capital Area Bank, to set up SFB.
About Capital Area Bank Ltd
• It is the largest Local Area Bank in the country and operates from Jalandhar in Punjab.
• It has completed 16 years of operation on 14 January 2016.
• It has been operating in three contiguous Districts of Jalandhar, Kapurthala and Hoshiarpur in Punjab for the initial 13 years.
• In January 2013, the Reserve Bank of India accorded the approval for expansion in the area of operation of the Bank to two more Districts of Ludhiana and Amritsar in Punjab.
• The Bank has about 80 percent of its business in rural and semi urban areas, with Priority Sector Lending of 68.27 percent of the Adjusted Net Bank Credit as on 31 March 2015.
• The conversion of the Bank is expected to give boost to the expansion plan of the Bank.
• Business of the Bank is expected to grow to 11800 Crore rupees, as on 31 March 31 2021, during the five years operations of the Bank as a SFB.
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When: 4 March 2016