Capital Small Finance Bank Limited was incorporated as Capital Local Area Bank Limited' on May 31, 1999 at Phagwara, Dist. Kapurthala, Punjab, as a Public Limited Company. The name of Bank was subsequently changed to Capital Small Finance Bank Limited' pursuant to a Shareholders' Resolution on April 2, 2016, to reflect the change in status of the Bank from a local area bank to a small finance bank dated pursuant to Reserve Bank of India approval dated March 4, 2016, and a fresh Certificate of Incorporation was granted by RoC at Punjab and Chandigarh on April 15, 2016. The Bank commenced its business pursuant to a Certificate of Commencement of Business issued by the RoC, Punjab, Himachal Pradesh and Chandigarh dated August 12, 1999. The Bank operate in a competitive environment and face competition from other Small Finance Banks, Scheduled Commercial Banks and NBFCs as well as local moneylenders in rural areas and unorganized, small participants in the market across all product segments. The loan portfolio comprises agricultural, MSME and trading, mortgage lending, retail loans and loans to large corporates. As a small finance bank, Bank focus primarily on agricultural, MSME and trading, retail and mortgage loans which constitute the majority of loans. In 2000, the Bank started operating transactions in Jalandhar, Kapurthala and Hoshiarpur as a local area bank. In 2013, it expanded operations in two additional districts of Ludhiana and Amritsar in Punjab, which consequently expanded the outreach of the Bank to five districts. The Bank commenced operations as India's first small finance bank effective from April 24, 2016, in terms of asset quality, cost of funds, retail deposits and CASA deposits. Prior to 2016, it operated as a local area bank and were one of the two non-microfinance institutions who were granted the SFB license by RBI. Due to background as a local area bank, the Bank already existed in diversified segments which accordingly, resulted in having lower systemic risks in comparison to the overall high MFI base. As of March 31, 2021, 74% of total branches were located in rural and semi-urban areas with 27% of the branches were in unbanked rural centres. As of June 30, 2021, the Bank had 159 branches spread across the States of Punjab, Haryana, Rajasthan and Delhi along with 161 ATMs. The Company is planning to come out with an initial public offer by raising Rs 450 crore equity shares through fresh issue and issuing upto 3,840,087 equity shares through offer for sale.