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 the title of “Cradle of Indian Banking” to Karnataka:
1. 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.
2. 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.
3. 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.
4. Karnataka Bank:
The foundation of Karnataka 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.
5. 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 the 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.
6. 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.
7. Vijaya Bank:
Vijaya 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.