1. Already in existence since 16 years in the capacity of a LAB operating at 44 branches with a deposit base of 1765 Crs. As of 31st Dec 2015 in Punjab region.
2. On 13th April 2016, it will be officially authorized by RBI to operate on PAN india level and plans to open 200-300 branches in next 3-4 years, for this level of expansion, the bank needs funding @ lower rates by Fin. Inst. For which it has to ensure that existing debt is served in a timely and proper manner.
3. The bank totally suites the agenda of modi govt. which plans to connect remote rural areas to the Indian Banking system and thus is being awarded the licence of "SMAL FINANCE BANK (SFB)".
4. In FY 2014-15, RBI gave in principle approved to 10 organizations for SFB licence and CLAB is the first out 10 to be awarded SFB licence.
5. The bonds issued will be BASEL I compliant in nature, BASEL I norms carry the highest level of safety as compared to BASEL II & BASEL III in terms of bank bonds.
6. Govt. has already reduced ROI on various schemes and there is a high possibility for a rate cut in next RBI meet (4th apr) which makes CLAB bonds much more attractive as future bank bonds might come at lower yields.
7. CLAB bonds give a post tax yield which is by far the highest available in any nature of bank bonds available currently
8. Last but not the least, history says that "NO BANK HAS EVER DEFAULTED IN THE INDIAN BANKING SYSTEM"
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