The state
of Karnataka is called the “Cradle of Indian Banking”. This state had
given rise to India’s seven leading banks like Canara Bank, Corporation Bank,
State Bank of Mysore, Karnataka Bank, Syndicate Bank, Vysya Bank, and Vijaya
Bank. These banks started their operations in the coastal districts of Dakshina
Kannada and Udupi in Karnataka and in later years, further spread their
operations to other parts of India. Karnataka’s contribution towards India’s
national income accounts for more than 5 percent making it the state that has
been ranked on top by the World Bank for its investment climate.
The following banks are responsible
for giving this title to Karnataka-
Canara Bank:
Canara Bank was founded in 1906
by Ammembai Subba Rao Pai as Canara Bank Hindu Permanent Fund in Mangalore.
Today the bank has 6639 branches in India and nine overseas branches.
Corporation Bank:
Corporation Bank was established in 1906 by a group of
philanthropists in the town of Udupi under the name of “The Canara Banking
Corporation (Udupi) Ltd”. The bank got its present name ‘Corporation Bank’ in
1972.
State Bank of Mysore:
State Bank of Mysore was formed
in 1913 by a banking committee as the Bank of Mysore Ltd. under the patronage
of the Mysore (now Mysuru) state. The bank associated with the State Bank of
India in 1960 and then later got merged with SBI on 1st April 2017.
Karnataka Bank:
The foundation of this bank was
laid on 18th February 1924, in Mangalore. Initially, the bank was established
to cater only to the people of Karnataka, but now it is functioning on the
pan-India basis.
Syndicate Bank:
Syndicate Bank was founded in 1925 in the town of
Udipi as “Canara Industrial and Banking Syndicate Ltd”. The bank was opened
with an objective of providing financial assistance to the local weavers
crippled by a crisis in the handloom industry. The bank got its present name in
1963.
Vysya Bank:
Vysya bank was founded in 1930 in Bangalore city with a motive to
provide banking services to the underprivileged. It gained the status of a
scheduled bank in 1948. The management of this bank was taken over by the ING
Group in 2002. Later in April 2015, Vysya Bank merged with the Kotak Mahindra
Bank.
Vijaya Bank:
The bank was established on 23
October 1931, in Mangalore with an aim to help the farmers. The bank was
nationalized in the 1980s by the government.
