1.

Q.

What is your Bank?  Is it a Cooperative Bank?

A.

The Coastal Local Area Bank Ltd.,  is like any other private sector bank, viz ICICI Bank, Axis Bank, Laxmi Vilas Bank, Karur Vysya  Bank, ING Vysya Bank etc.,

The bank was registered under Companies Act.1956, as per the license issued by the Reserve Bank of India (RBI).  The bank is under the regulatory supervision of the RBI.  RBI conducts annual financial inspection (AFI) every year and ensures proper conduct of the bank operations as per the regulations.

2.

Q.

At what level the RBI has assessed the performance of the Coastal Local Area

Bank Ltd.,?

A.

The Bank’s performance is considered satisfactory.

3.

Q.

A.

The bank has been functioning in 3 districts of Andhra Pradesh. They are Guntur, Krishna and West Godavari. The Bank has 23 branches functioning in these 3 districts as at 15-12-2011. The names of branches, their addresses and phone numbers are furnished in the pamphlet supplied.

4.

Q.

A.

The strength of a bank is judged by certain important parameters.                                         

  (Rs. in Crores)       

5.

Q.

A.

Coastal local area bank ltd is a strong bank, governed by competent and experienced personnel. The bank is functioning on strong fundamentals, with the board approved policies, systems and procedures, complying with the RBI regulations.  The asset (loan) portfolio is strong and safe with adequate collaterals. The portfolio consists about 52% gold loans to total credit and highly satisfactory recovery performance.

The deposits of each individual are insured up to Rs.1.00 lakh, with the Deposit Insurance Corporation (DICGC), which is an extended arm of RBI.

6.

Q.

A.

The details are furnished in the pamphlet supplied.  The bank is offering the best rates of interest on deposits compared to any other commercial bank operating in these 3 districts.

Further, the Bank is offering 1% interest extra for senior citizens (60 years age and above) for the term deposits of one year and above. For deposits of less than one year, the Bank is offering 0.50% extra.

7.

Q.

A.

There is a difference in overall functioning of the Cooperative Banks and Commercial Banks.  The commercial banks are under the total control and regulation of RBI and there are restrictions on lending rates of certain segments like priority sector advances.  Keeping in view all the parameters, including statutory reserves (CRR & SLR), the deposit interest rates are fixed, however in tune with the market trend.

8.

Q.

A.

The interest rates on advances are related to interest paid on deposits, operating cost for the bank, risk perception, overheads and profit.  Further, there is no level field for the public sector banks (PSBs) and private sector banks.  The PSBs are benefited with major part of low cost deposits and interest sub-vention from GOI. Hence their lending rates are low.

Each bank fixes its PLR (Primary lending rate). Our bank’s PLR is 14.75% now.  The PLR of some private sector banks functioning in our area is around 15% and in one large sized bank it is 17.50%. PLR is the rate of interest at which the bank lends to its important and the best customers. In that way, the rate of interest at which the Bank lends is highly reasonable.

9.

Q.

A.

 A. Deposits :

 B.  Advances:

10.

Q.

A.

The cost of operations of the bank is continuously going up.  The salaries, telephone charges, conveyance, printing and stationery, premises rent etc., are going up year after year.  The service charges of our bank are not revised for the last about 10 years.

The Bank had made an attempt to cost the operations of various products and services.  Further, the Bank compared the service charges being levied by other banks.  We finalized the service charges in such a way that the levy is comparatively lesser than other banks.

The so called less rates offered by some banks if any , have a tag attached to the minimum level balances  to be maintained by the customers in their Current /SB a/cs. Such a provision is available with our bank also.

11.

Q.

A.

The Bank has lent 45.18% of total advances to priority sector, against prescribed 40% (Agriculture & allied activities 15.46% against prescribed 18%, weaker sections 10.75% against prescribed 10%, women 10% against prescribed 5% to total advances), as at 31.03.2011.

12.

Q.

A.

The Bank is supported by “Core Banking Solutions” (CBS).  All the branches are networked and we are able to provide on-line banking facility.  We are having arrangements with two private banks (Axis Bank and IndusInd Bank) and online transfer is possible to anywhere in India and abroad under various funds transfer methods like RTGS, NEFT, SWIFT etc.,

13.

Q.

A.

The Bank is the process of planning for installation of ATMs. It may take some more time. However, we may add here that all our branches have split business hours (i.e.10.00 AM to 2.00 PM and 3PM.To 6.00 PM on all working days. On Saturdays the timings are restricted). Customers may make use of split business hours for convenience banking.

14.

Q.

A.

The Bank is totally manned by officers only.  The staff is empowered with adequate knowledge and there may not be any situation for a grievance. However, each branch is headed by a Manager, who is an experienced officer.  He is available at the branch throughout the business hours for sorting out any grievance of customers.  If the customer is not satisfied with the support or a reply from the branch manager, he/she can approach the appellate authority i.e. Chief General Manager, whose address and contact numbers are displayed in each branch.

15.

Q.

A.

As on 31^st December 2011, the bank has 132 employees. The Bank has plans to increase the capable manpower with further increase in business and network.

16.

Q.

A.

Yes. The Bank is earning profit every year, since inception.  The profit for the year ending 2010-11 was Rs.483.51 Lakhs.  It is sure to earn more profit during the current year.

17.

Q.

A.

Yes. The Bank extends loans to all sectors, subject to viability and compliance to standards fixed by the Bank.  Credit policy is in place and all the proposals complying with the standards are considered for sanction.

18.

Q.

A.

The Bank earned a good name for personalized services to its customers. The important aspect is that the Bank is investing (lending) all its resources (deposits + other available funds) in the 3 districts where it is operating. The Bank stands for “OUR AREA” , “OUR CLIENTELE”, “OUR BANK”.

FIRST IN SERVICE                   &                  BEST IN TRUST