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, equity and mutual funds. They have also been forced to upgrade their technology and introduce services like ATMs and online-banking transactions.
As of March 2002, Karnataka had 4767 branches of different banks servicing the people of the state. [3] 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. [3]
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 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. [2] It has grown since then and now has 2542 branches in India and one overseas branch in London. [4] 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. [5] In 2002-03, the bank went in for its Initial Public Offer (IPO) and raised Rs.110 crores. [2] The India government holds a 73% stake in Canara Bank. [5]
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". [6] 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. [7] A banking committee headed by Sir M Visweswaraiah 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. [7]
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 Dr. T M A Pai. [8] 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. [8] 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. [9] 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.
Karnataka is a state in the southwestern region of India. It was formed on 1 November 1956, with the passage of the States Reorganisation Act. Originally known as the State of Mysore, it was renamed Karnataka in 1973. The state corresponds to the Carnatic region. Its capital and largest city is Bangalore.
Kanara, also known as Karavali and formerly as Canara, is the a historically significant stretch of land situated by the southwestern coast of India, alongside the Arabian Sea in the present-day Indian state of Karnataka. The region comprises three civil districts, namely: Uttara Kannada, Udupi, and Dakshina Kannada.
Dakshina Kannada district is a district of Karnataka state in India, with its headquarters in the coastal city of Mangalore. It is part of the larger Tulu Nadu region. The district covers an area nestled in between the Western Ghats to its east and the Arabian Sea to its west. Dakshina Kannada receives abundant rainfall during the Indian monsoon. It is bordered by Udupi district to the north, Chikmagalur district to the northeast, Hassan district to the east, Kodagu to the southeast and Kasaragod district of Kerala to the south. According to the 2011 census of India, Dakshina Kannada district had a population of 2,083,625. It is the only district in Karnataka state to have all modes of transport like road, rail, water and air due to the presence of a major hub, Mangalore. This financial district is also known as the Cradle of Indian banking.
Tulu Nadu, also called Bermere sristi or Parashurama Srishti, is a region and a proposed state on the southwestern coast of India. The Tulu people, known as 'Tuluva', speakers of Tulu, a Dravidian language, are the preponderant ethnic group of this region. South Canara, an erstwhile district and a historical area, encompassing the undivided territory of the contemporary Dakshina Kannada and Udupi districts of Karnataka State and Kasaragod district of Kerala state forms the cultural area of the Tuluver.
State Bank of Mysore was a Public Sector bank in India, with headquarters at Bangalore. It was one of the five associate banks of State Bank of India, all of which were consolidated with the State Bank of India with effect from 1 April 2017.
Modern banking in India originated in the mid of 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.
Syndicate Bank was one of the oldest and major commercial banks of India. It was founded by Upendra Ananth Pai, T. M. A. Pai and Vaman Srinivas Kudva. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalised on 19 July 1969, by the government of India. It was headquartered in the university town of Manipal, India. On 1 April 2020, the bank was merged into Canara Bank.
Canara Bank is the third largest nationalised bank in India. It is under the ownership of the Ministry of Finance, Government of India. It is headquartered in Bangalore. Established in 1906 at Mangalore by Ammembal Subba Rao Pai, the bank also has offices in London, Hong Kong, Dubai and New York.
Udupi district is an administrative subdivision in the Karnataka state of India, with the district headquarters in the city of Udupi. It is situated in the Canara coastal region, there are seven taluks, 233 villages and 21 towns in Udupi district. The three northern tehsils of Udupi, Kundapur and Karkala, were partitioned from Dakshina Kannada district to form Udupi district on 25 August 1997. Moodabidri was officially declared as new tehsil (taluk), separated from Karkala with effect from 11 January 2018.
Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai, India.
Karnataka Bank Limited is an old generation private sector bank. It is an 'A' Class Scheduled Commercial Bank based in Mangaluru in Karnataka, India. Karnataka Bank Limited has a network of 890 branches, 1 Extension Counter, 885 ATMs, 563 Cash Recyclers and 546 e-lobbies/mini e-lobbies across 22 states and 2 union territories. It has 8,519 employees and over 11 million customers throughout the country. Its shares are privately owned by over 1,46,000 shareholders. The tagline of the bank is "Your Family Bank Across India".
Vijaya Bank was a PSU bank which was merged with Bank of Baroda in April 2020 with its head office in Bangalore, Karnataka, India. It was one of the nationalised banks in India. The bank offered a wide range of financial products and services to customers through its various delivery channels. The bank had a network of 2031 branches throughout the country and over 4000 customer touch points including 2001 ATMs.
'Economy of South India after independence in 1947 conformed to a socialist framework, with strict governmental control over private sector participation, foreign trade and foreign direct investment (FDI). Through 1960–1990, South Indian economies experienced mixed economic growth. In the 1960s, Kerala achieved above-average economic growth, while Andhra Pradesh's economy declined during this period. Similarly, Kerala experienced an economic decline in the 1970s while the economies of Tamil Nadu, Andhra Pradesh, and Karnataka consistently exceeded national average growth rates after 1970. Andhra Pradesh, Tamil Nadu and Karnataka were noted by some to be more reform-oriented in terms of economic policy when compared to other Indian states. Over the last decade South India has grown at 8% annually. Future economic growth will be shackled by a relatively low proportion of the active age population to the number of dependents.
Karnataka is one of the highest economic growth states in India with an expected GSDP growth of 8.2% in the 2010–11 fiscal year. The total expected GSDP of Karnataka in 2010–2011 is about ₹ 2719.56 billion. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In 2008–09, the tertiary sector contributed the most to GSDP, followed by the secondary sector, and the primary sector.
ING Vysya Bank was a privately owned Indian multinational bank based in Bangalore, with retail, wholesale, and private banking platforms formed from the 2002 purchase of an equity stake in Vysya Bank by the Dutch ING Group. This merger marked the first between an Indian bank and a foreign bank. Prior to this transaction, Vysya Bank had a seven-year-old strategic alliance and shareholding arrangement with erstwhile Belgian bank Banque Bruxelles Lambert, which was also acquired by ING Group in 1998.
Mulki Sunder Ram Shetty (1915-1981) was an Indian Banker. He was associated with Vijaya Bank since 1946 and joined the board of directors of the bank as Chairman from 1962, became the Hon. Chairman from 1962 to 1969 resulting in growth of Vijaya bank. and then remained as full-time Chairman till 1978. Under the Chairmanship of Shri Mulki Sunder Ram Shetty, Vijaya Bank steadily grew into a large All India Bank with nine smaller banks merging with it during 1963-1968. During the year 1965, the Bank registered its own logo.
Vaman Srinivas Kudva, popularly called V. S. Kudva, was a founding director of Syndicate Bank, one of the oldest and major commercial banks of India.
Public Sector Banks (PSBs) are a major type of government owned banks in India, where a majority stake is held by the Ministry of Finance of the Government of India or State Ministry of Finance of various State Governments of India.. The shares of these banks are listed on stock exchanges. Their main objective is social welfare
The Karnataka Vikas Grameena Bank (KVGB), an Indian Regional Rural Bank sponsored by Canara Bank. It is under the ownership of Ministry of Finance, Government of India. The bank provides retail banking services to rural users and has 628 branches in areas of Karnataka, around North and Western Karnataka.
