Coastal Local Area Bank Limited, headquartered in Vijayawada, was included in the Second Schedule to the Reserve Bank of India Act, 1934, and received scheduled bank status. The Reserve Bank of India issued the inclusion through Notification DoR.LIC.No.S3539/22-03-070/2026-27, and the notification was published in the Gazette of India.
Scheduled Bank Status
Scheduled banks in India are banks listed in the Second Schedule of the Reserve Bank of India Act, 1934. Such banks can access Reserve Bank of India liquidity facilities, participate in money market operations, and receive refinance support from institutions such as NABARD and the National Housing Bank.
Coastal Local Area Bank Profile
Coastal Local Area Bank operates as a local area bank with branches in Andhra Pradesh and Telangana. The bank reported 57 operating branches across 12 districts, and it received approval to expand into Vizianagaram, Prakasam, and Khammam districts.
Financial Position as on 31 March 2026
The bank reported deposits of ₹994.72 crore and advances of ₹910.05 crore as on 31 March 2026. It recorded a net profit of ₹19.30 crore and a net worth of ₹198.08 crore for the same period.
Asset Quality and Capital Adequacy
The bank’s net Non-Performing Assets ratio stood at 0.21% as on 31 March 2026. Its Capital-to-Risk Weighted Assets Ratio was 24.81%, which is above the Reserve Bank of India’s minimum regulatory requirement of 9%.
Important Facts for Exams
- The Reserve Bank of India Act, 1934, provides the legal framework for scheduled bank classification in India.
- Scheduled banks are included in the Second Schedule of the Reserve Bank of India Act, 1934.
- Capital-to-Risk Weighted Assets Ratio is a key measure of a bank’s capital adequacy.
- Non-Performing Assets are loans on which interest or principal remains overdue beyond the prescribed period.
Branch Expansion and Operations
The bank received approval to open 13 new branches along with its expanded district presence. Coastal Local Area Bank became the only scheduled bank headquartered in Andhra Pradesh after the inclusion.
