Before India gained Independence, the cooperative movement was not widely publicized or encouraged. Despite this, senior leaders of the Tumkur City – Sri G. Muddappa, Sri T. M. P. Siddappa, Dr. T. S. Mallikajunaiah and Sri N. R. Jagdeesharadhya – came together to initiate a cooperative organization.
On December 19, 1944, the Tumkur Town Veerashaiva Cooperative Society was established. Initially, the Society provided only essential food grains and daily use items to its valid members. As the Society showed signs of progress, the executive board members decided to expand its operations by starting a financial institution to offer financial facilities to the poor and middle-class people.
In 1972, a financial association was created to collect share money from members. By 1975, the association had raised a share capital of over One Lakh Rupees. Recognizing the organization’s growth, the Cooperative Department was informed through a letter.
Due to the association’s development, member encouragement and the board’s efforts, the department of cooperation granted permission on July 11, 1978, to convert the financial institution into a bank, instructing them to obtain a license from the Reserve Bank of India.
On August 11, 1978, the Tumkur Town Veerashaiva Co-operative Bank Limited was officially established. Banking activities such as deposit collection and loan disbursement began on this date. The Reserve Bank of India issued the bank’s license on November 11, 1986, under the number UBD KA 635 P.
In the financial year 1978-79, the bank had 731 members with a share capital of Rs. 2,96,291.00. Deposits amounted to Rs. 34,185.00, loans disbursed were Rs. 11,06,198.00. The net profit earned was Rs. 45,000.00. During this period, Sri C. L. Shekarappa served as the Chairman of the Executive Board and Sri N. R. Vishwaradhya as the Vice President.
The bank saw increasing profits annually by expanding its deposit collection and loan disbursement activities. After discussions within the executive board, it was decided to extend the bank’s operations beyond Tumkur city. Permission was obtained from the Reserve Bank of India to expand into Tumkur district, Hassan district, Bangalore city and Bangalore rural districts with the name of Tumkur Veerashaiva Co-Operative Bank Limited.
Consequently, the bank’s growth accelerated with new branches opening in Tumkur, Gubbi, Tiptur and Bangalore. As the bank continued to develop, discussions during meetings focused on enhancing medical, insurance and financial support facilities for valued members.
To foster economic and social growth, the executive board sought permission from the Reserve Bank of India to expand operations to the districts of Mysore, Chikkamagalur, Chitradurga, Davanagere and Shimoga.
Reflecting the bank’s growth, a well-constructed building for the Someshwarapuram Branch, Tumkur and Administrative Office was completed on September 5, 2004. Additionally, in 2019-20, a plot was purchased for the Nelamangala branch to establish its own building.
With the encouragement of the executive board members and the continuous efforts of the staff, the bank reduced its NPA ratio to 2.89% for the year 2022-23, falling below the limit set by the Reserve Bank of India. Consequently, permission was obtained from the Reserve Bank of India to distribute a 10% share dividend for the year 2022-23, which was subsequently distributed to the valid members.