Mangalore Co Operative Town Bank

The history of the co-operative movement in the district can be traced to 1909 when as a result of the enthusiasm of a few pioneers of Puttur, a rural co-operative society was registered under the Co-operative Credit Societies Act of 1909. In 1913, the Puttur Rural Credit Society Ltd. (subsequently renamed as South Kanara Central Co-operative Bank Ltd.) was established. It has had a fairly prosperous career since its inception. In 1923, the Labour Department of the Government of Madras first started work in South Kanara and one of its main activities was the organization and working of co-operative societies for the depressed and backward classes. All these societies were financed mainly by the Central Co-operative Bank. In the subsequent period co-operative Societies have been started in several parts of the district and have provided increasing financial assistance to agriculturists, mainly to meet the annual expenses of cultivation and to repay old debts. Apart from other benefits a good number of deserving persons got loans at reasonable rates of interest for productive purposes. It may be said that to this movement goes, to a considerable extent, the credit of reducing the rates of interest throughout the district and rescuing many people from the clutches of professional money-lenders. In 1907, the Madras Government appointed the Townsend Committee, which examined the progress, made by the movement and made recommendation; for its further development. Basing on this scrutiny the Government enacted a separate legislation in respect of co-operative societies and in 1932 the Madras Co-operative Societies Act and in 1934, the Madras Land Mortgage Banks Act were passed. In 1939, the Vijayaraghavachari Committee on Co-operation gave a valuable report for improving the working of the co-operative institutions. Banking has made its mark in this region. The five banks that originated here have flourished and have come to be known all over India and also abroad.