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{{more footnotes|date=January 2020}}
{{Use dmy dates|date=January 2020}}
{{Use Indian English|date=January 2020}}
The state of [[Karnataka]], particularly the coastal districts of [[Dakshina Kannada]] and [[Udupi district|Udupi]], historically and collectively known as [[South Canara]], is called the '''cradle of banking''' in India.<ref name="cradle">{{cite web|url=http://www.flonnet.com/fl2221/stories/20051021002509200.htm |work=Online Webpage of The Frontline, Volume 22 - Issue 21, Oct. 08 - 21, 2005 |title=Building on a strong base |author=Ravi Sharma |publisher=© 2005, Frontline |accessdate=2007-06-21 |url-status=dead |archiveurl=https://web.archive.org/web/20071007155202/http://www.flonnet.com/fl2221/stories/20051021002509200.htm |archivedate=2007-10-07 }}</ref> This is because seven of the country's leading banks, [[Canara Bank]], [[Syndicate Bank]], [[Corporation Bank]], [[Vijaya Bank]], [[Karnataka Bank]], [[ING Vysya Bank|Vysya Bank]] and the [[State Bank of Mysore]] originated from this state.<ref name="cradle"/> The first five in the above list of banks were established in the districts of [[Udupi district|Udupi]] and [[Dakshina Kannada]]. These districts have one among the best distribution of banks in India - a branch for every 500 persons.<ref name="fl">{{cite web|url=http://www.hinduonnet.com/fline/fl2015/stories/20030801002810400.htm|work=Online Edition of the Frontline, Volume 20 - Issue 15, July 19 - August 01, 2003|title=A pioneer's progress|author=Ravi Sharma|publisher=© 2003, Frontline|accessdate=2007-06-21}}</ref> Between 1880 and 1935, 22 banks were established in [[Kanara|coastal Karnataka]], nine of them in the city of [[Mangalore]].

==Origin==
The origin of banking in [[Kanara|Karnataka's coastal region]] can be traced to the year 1868 when the Presidency Bank of Madras opened a branch to cater to the needs of British companies involved in exporting plantation produce.<ref name="cradle"/> In 1912, the Indian Co-operative Societies Act in 1912 further energised the financial sector in this region leading to the establishment of a lot of co-operative societies. The freedom movement of India also played a crucial role as can be seen in the establishment of Karnataka Bank which was created as an offshoot of the [[swadeshi]] movement of 1905. These banks were earlier created to address the main sector in the economy i.e. agriculture but later they diversified to address other economical sectors as well.
{| class="wikitable sortable"
!Bank
!Place of origin
!Year
|-
|[[Canara Bank]]
|[[Mangalore]]
|{{start date and age|1906}}
|-
|[[Karnataka Bank]]
|[[Mangalore]]
|{{start date and age|1924}}
|-
|[[Vijaya Bank]]
|[[Mangalore]]
|{{start date and age|1931}}
|-
|[[Corporation Bank]]
|[[Udupi]]
|{{Start date and age|1906}}
|-
|[[Syndicate Bank]]
|[[Udupi]]
|{{Start date and age|1925}}
|-
|[[Vysya Bank Ltd|Vysya Bank]]
|[[Bangalore]]
|{{Start date and age|1930}}
|-
|[[State Bank of Mysore]]
|N/A
|{{Start date and age|1913}}
|}

==Growth==
The Indian Government's notification of nationalisation of banks in 1969 and 1980, resulted in lot of these banks being nationalised with the Indian Government now owning some amount of control over these banks. As of today, State Bank of Mysore, Canara Bank, Vijaya Bank and Vysya Bank have their headquarters in Bangalore, Corporation Bank and Karnataka Bank are headquartered in Mangalore while Syndicate Bank is headquartered in [[Manipal]]. The entry of the private sector into the banking sector with aggressive marketing has led these banks to rethink some of their strategies. Earlier, banking was the main activity that was undertaken by these banks but due to the competition, they have been forced to diversify into other areas like [[insurance]], [[shareholders' equity|equity]] and [[mutual funds]]. They have also been forced to upgrade their technology and introduce services like [[Automated teller machine|ATM]]s and online-banking transactions.

As of March 2002, Karnataka had 4767 branches of different banks servicing the people of the state.<ref name="rbi">{{cite web|url=http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/35585.pdf |title=State/Union Territory-Wise Number of Branches of Scheduled Commercial Banks and Average Population Per Bank Branch – March 2002 |work=Online webpage of the Reserve Bank of India |accessdate=2007-06-21 |url-status=dead |archiveurl=https://web.archive.org/web/20070810094850/http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/35585.pdf |archivedate=2007-08-10 }}</ref> The number of people served by each branch was 11,000 which is lesser than the national average of 16,000, thereby indicating better penetration of banking in the state.<ref name="rbi"/>

==Banks==
The scheduled banks in Karnataka had total deposit of Rs. 1346.99 billion constituting 6.4% of the total deposits in scheduled banks in India as of March 2006. The credit given by these banks stood at Rs. 1034.55 billion, 6.8% of total credit given by scheduled banks. The per capita deposit stood at Rs. 23,976 and per capita credit at Rs. 18,415.

===Canara Bank===
[[Canara Bank]] was established in 1906 by [[Ammembal Subba Rao Pai|Ammembai Subba Rao Pai]] established the ''Canara Bank Hindu Permanent Fund'' in Mangalore, [[India]], on 1 July 1906.Who collected handful of rice from each household, pooled the rice and sold it and used the money earned for the bank's capital.<ref name="fl"/> It has grown since then and now has 2542 branches in India and one overseas branch in [[London]].<ref name="cb">{{cite web|url=http://www.canbankindia.com/locator/network.html |title=Branches and Offices |work=Online Webpage of The Canara Bank |accessdate=2007-06-21 |archiveurl=https://web.archive.org/web/20070606111701/http://www.canbankindia.com/locator/network.html |archivedate=2007-06-06 |url-status=live }}</ref> In the [[fiscal year]] 2005-06, Canara Bank became India's second-largest public sector bank in terms of advances and deposits. The bank changed its name to Canara Bank Limited in 1910 when it incorporated.<ref name="canara">{{cite web|url=http://www.rediff.com/money/2007/may/09canara.htm|work=Online webpage of The Rediff.com, dated 2007-05-09|title=Canara Bank eyes Dena, appoints E&Y for deal|publisher=© 2007 Rediff.com India Limited|accessdate=2007-06-21| archiveurl= https://web.archive.org/web/20070715022635/http://www.rediff.com/money/2007/may/09canara.htm| archivedate= 15 July 2007 | url-status= live}}</ref> In 2002-03, the bank went in for its Initial Public Offer ([[Initial public offering|IPO]]) and raised Rs.110 crores.<ref name="fl"/> The India government holds a 73% stake in Canara Bank.<ref name="canara"/>

===Corporation Bank===
[[Corporation Bank]] was founded by a group philanthropists headed by ''Khan Bahadur Haji Abdulla Haji Kasim Saheb Bahadur'' in the town of [[Udupi]] in 1906 under the name of ''"The Canara Banking Corporation (Udupi) Ltd".'' <ref name="corp">{{cite web|url=http://www.corpbank.com/asp/0100text.asp?presentID=84&headID=47 |title=History |work=Online webpage of the Corporation Bank |accessdate=2007-06-21 |archiveurl=https://web.archive.org/web/20070609201239/http://www.corpbank.com/asp/0100text.asp?presentID=84&headID=47 |archivedate=9 June 2007 |url-status=dead }}</ref> In 1972, it got its present name of Corporation Bank and it was nationalised in 1980.

===State Bank of Mysore===
[[State Bank of Mysore]] (SBM) was established in 1913 under the name Bank of Mysore Ltd.<ref name="sbm">{{cite web|url=http://www.statebankofmysore.co.in/profile.htm|title=Our Profile|work=Online webpage of the State Bank of Mysore|accessdate=2007-06-21|archiveurl=https://web.archive.org/web/20070628233014/http://www.statebankofmysore.co.in/profile.htm|archivedate=28 June 2007|url-status=dead}}</ref> A banking committee headed by [[Sir M V]]isweswaraiah was formed under the patronage of the [[Mysore state]] which led to the formation of this bank. In 1960, this bank was made an associate bank of the [[State Bank of India]] which holds 92.33% of shares of SBM. As of Mar-2007, SBM has 644 branches and provides employment to 9604 employees.<ref name="sbm"/>

===Karnataka Bank===
The [[Karnataka Bank]] was founded on 18 February 1924 at [[Mangalore]].The bank initially catered to people of Karnataka, has now spread its network of branches throughout the country.

===Syndicate Bank===
[[Syndicate Bank]] was established in the town of [[Udupi]] in 1925 under the name "Canara Industrial and Banking Syndicate Ltd" with a capital of Rs.8000/- by three people - Upendra Ananth Pai, Vaman Kudva, and [[T. M. A. Pai|Dr. T M A Pai]].<ref name="synd">{{cite web|url=http://syndicatebank.in/asp/0100text.asp?pageId=69 |title=About Us |work=Online webpage of The Syndicate Bank |accessdate=2007-06-21 |archiveurl=https://web.archive.org/web/20070227134253/http://syndicatebank.in/asp/0100text.asp?pageId=69 |archivedate=2007-02-27 |url-status=live }}</ref> The main objective for stating the bank was to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry. In 1963, it got its present name of Syndicate Bank.<ref name="synd"/> Now the bank has 2125 branches.

===Vysya Bank ===
Vysya Bank was established in 1930, in Bangalore (now Bengaluru) with the aim of offering banking services to those who were currently not privileged enough to do so.
In 1948 Vysya Bank became a scheduled bank.
On 7 October 2002 ING Group took over the Management of the Bank. But again ING Vysya Bank has merged with Kotak Mahindra Bank with effect from 1 April 2015 and the combined entity bears the name Kotak Mahindra Bank.<ref>{{Cite web |url=http://ingvysya.kotak.com/personal-banking/products/ingvysya-kotak-merger.aspx |title=Archived copy |access-date=2015-08-07 |archive-url=https://web.archive.org/web/20150820095627/http://ingvysya.kotak.com/personal-banking/products/ingvysya-kotak-merger.aspx |archive-date=2015-08-20 |url-status=dead }}</ref>
Before merger ING Vysya Bank had about 470 branches spread all over India.

=== Vijaya Bank ===
[[Vijaya Bank]] was established on 23 October 1931 at coastal city [[Mangalore]] by [[A. B. Shetty]] and others. The bank was established to help farming community. Later bank grew phenomenally under leadership of [[Mulki Sunder Ram Shetty]] during the 1960s. The Vijaya bank was nationalised in the 1980s by Government of India. The bank has presence in most of states of India. Later it was merged with [[Bank of Baroda]] along with [[Dena Bank]] on First April 2019.

==See also==
*[[Banking in India]]
*[[Pigmy Deposit Scheme]]

==Notes==
{{reflist}}

== External links==
*[https://web.archive.org/web/20070414171316/http://www.metlife.co.in/MetIndia/About%20Us/Partnership/Karnataka%20Bank/KarnatakaBank.HTML?QryStr=prtnrKarId MetlifeIndia retrieved on 2007/06/19 ]
*[http://karnatakabank.com/ktk/Index.jsp Karnataka Bank Website]
*[http://www.corpbank.com/ Corporation Bank Website]
*[https://web.archive.org/web/20070628233014/http://www.statebankofmysore.co.in/profile.htm#branch State Bank of Mysore Website]
*[https://web.archive.org/web/20070701161219/http://www.canbankindia.com/aboutus/history/fp-ind.html Canara Bank Website]
*[https://web.archive.org/web/20110107105440/http://www.syndicatebank.in/ Syndicate Bank Website]
*[https://web.archive.org/web/20070701100001/http://www.vijayabank.com/ Vijaya Bank Website]
*[https://web.archive.org/web/20070927024037/http://www.rbi.org.in/scripts/PublicationsView.aspx?id=8914 RBI Publications]

[[Category:Banking in India]]
[[Category:Banks based in Karnataka]]
[[Category:Economy of Karnataka]]

Banking in Karnataka - Revision history

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