D. Jalandhar, Punjab Explanation: Currently, Capital Area Local Bank is operating in Punjab‘s five districts – Jalandhar, Kapurthala, Hoshairpur, Ludhiana and Amritsar.Capital Local Area Bank has emerged as the first bank to have received licence from the Reserve Bank of India to start small finance bank. The bank plans to start operations as a small finance bank from the next financial year as it eyes a total business size of Rs 6,700 crore with 110 branches by 2020.