The State Bank of Mysore was first incorporated as “Bank of Mysore Ltd” on 2nd October 1913 under the aegis of the Government of Mysore and on the recommendation of the Banking Committee headed by Bharat Ratna Sir M Visvesvaraya, the renowned engineer statesman. The Bank was appointed as an agent of Reserve Bank of India in 1953 to undertake Government business and Treasury operations. It became a subsidiary of State Bank of India in March 1960 under SBI Subsidiary Banks Act 1959.

The Bank widely known as “Mysore Bank” or “NAMMA BANK” in the state of Karnataka, is celebrating 100 years of its existence during this year. The Bank has an enviable record of earning uninterrupted profits and declaring dividends since its inception.

The bank registered a strong performance during first 3 quarters ended 31st December, 2012, with a growth of 17 % in operating profit, 34 % in net profit, apart from achieving a reduction in gross NPA levels and enhancing its Net Interest Margin to 3.27%.

SBM has a network of about 760 branches with a significant presence in rural and semi-urban areas apart from urban and metro centers all over the country. The principle area of operation is, however, Karnataka, where the bank has 621 branches with 8 % of the state’s banking business and with a CD ratio of 60%. The bank plans to expand its network to a 1,000 branches during the centenary year. The business turnover is expected to cross Rs.1,00,000 crores during the current fiscal.
The bank has a strong and valued relationship as the Agency Bank for the government of Karnataka for whom it handles 40% of the treasury operations. The bank also maintains 112 currency chests of which 105 are in the state of Karnataka.

SBM has been closely involved with the development of the state of Karnataka through its lending to the priority sector. The bank has a 16% share in the agricultural business of the state. It has registered a year on year growth rate of 17% to the agriculture sector despite the widespread drought which has affected the state for the 3rd year in a row. As part of the relief measures the bank has restructured over 63,000 accounts as per GOI/RBI schemes. The bank has also been extremely active in the MSME sector with 6 specialized branches and 30 intensive branches set up for the benefit of this sector. The rates of interest have recently been slashed significantly and several products added as a measure of support to the sector. The bank extends collateral free loans upto Rs 100 lakhs under CGTMSE scheme where it also bears the guarantee fee and annual service fee.

SBM has been a major player in the retail market with a range of personal banking products, which includes a product offering an accident insurance of Rs 4 lakhs on payment of an annual premium of just Rs 100. The bank also offers competitive rates of interest on its housing and vehicle loans. As a corporate agent of SBI life, SBM customers have access to a wide range of life and health insurance products.

The Bank was first Public Sector bank to cover all its branches under Core Banking Solutions in Karnataka. The early adoption of technology has put the Bank ahead of other banks in the industry to offer state of the art Internet Banking and Mobile Banking facilities. The Bank has ATM network of 849 and provides access to over 28,000 ATM’s of State Bank Group to its ATM card holders. The bank is consciously striving to improve the e-transactions which are at 39% of total transactions.

The Bank has implemented meaningful financial inclusion (FI) in letter and spirit well ahead of the schedule in all its allotted villages through Branch/BC Model. The Bank has setup Ultra Small Branches in 61villages and will be extended to all other FI villages before 31.01.13, a new initiative of GOI to take the banking services to the door steps of remote villages. The Bank is also participating in “Direct Benefit Transfer” scheme as a Sponsor Bank and as a Destination Bank.

As a committed and responsible corporate citizen, the Bank actively participates/associates with various community service activities for the well being of needy.

Mysore Bank: Celebrating 100 years of its existence
State Bank of Mysore, popularly known as Mysore Bank, established by great statesman Sir M. Visvesvaraya is celebrating its centenary year now. The Bank, having a motto of “Working for a better tomorrow” is declaring profits every year since its inception. Bank has announced dividends continuously since its inception.

“The Bank of Mysore Limited” (now State Bank of Mysore) was registered on 19th May 1913 on the recommendation of Banking committee headed by Sir M. Visvesvaraya under the patronage of the Shri Nalvadi Krishnarana Vodeyar, Maharaja of Mysore. The establishment of “Mysore Bank” was of great help to advance-starved small and medium businessmen of old Mysore area. As such, 1913 is a landmark year in the banking history of Mysore State.

Original capital Rs.20 lakhs
Mysore Bank started its business on Vijayadashami, 2nd October 1913 with a capital of Rs.20 lakhs.  The inspiring figure for Sir M. Visvesvaraya was the then Maharaja of Mysore Shri Nalvadi Krishnaraja Vodeyar. The bank became associate of State Bank of India in 1960 and at present SBI holds 92.33%  shares of the Bank. Other shares are held by private investors and institutions.

Head Office on Kempegowda Road, Bangalore
Bank’s first office was on Kempegowda Road. Later, in 1969 the head office of “State Bank of Mysore” was established in the multistory building adjacent to it. The first office of Mysore Bank was later converted to present day “Bangalore Branch” of the Bank.

Along with the basic banking business, State Bank of Mysore also focuses on Rural Development and Agricultural lending with several innovative schemes. Total branches of Mysore Bank is 745,  of which 606 branches are in Karnataka.(September 2012) The spread of branches include 35 branches in Tamilnadu, 25 branches in Maharashtra, 24 branches in Andhra Pradesh, 15 branches  in Delhi, 10 branches each in Kerala and West Bengal. Apart from these branches, 22 extension counters are also doing banking business all over the country.

The contribution of Mysore Bank to Agriculture and Industrial sector is remarkable. Bank has 4 Industrial Finance branches and 9 Agricultural Development Branches.
Mysore Bank is entrusted with the responsibility of Lead Bank in Mysore, Tumkur and Chamarajanagara Districts of Karnataka State and total staff strength of the Bank is 10,249. The ATMs of the Bank, numbering 802, are networked with 27,286+ ATMs of State Bank group.(September 2012)

100% Core Banking Solutions
Bank’s service to the customers took a gigantic leap, with the introduction of single window concept and Core Banking solutions in 2005 and all the branches of the Bank are computerized and networked with core banking solutions. Bank is providing E-banking, anywhere banking, RTGS, NEFT, mobile banking and other facilities to the customers and is developing as a prominent Bank in Banking Industry.

Social Responsibility
As per the wishes of Sir M. Visvesvaraya, the founder of the Bank, apart from earning uninterrupted profits, Mysore Bank is committed to community services and social activities. Bank has donated Rs.1.00 crore to Industrial training centre established at Muddenahalli, Chickaballapura Taluk, the birth place of Visvesvaraya, which is  providing job oriented courses to hundreds of rural youth. Bank has donated sizable amount for constructions of blocks at Mysore University and Tumkur University and it has adopted tribal villages for integrated development in Mysore and Chamarajanagara districts.

Land Marks of Mysore Bank

* First Branch at Bangalore – 2 October 2012
* First Share holders meet – 6 November 1913
* First Financial results of the Bank – 31 December 1913
* First branch outside the state – Chennai – 1943
* 100 % Core Banking solutions – 2005

First Ten Directors of the Bank
Divan Bahaddur Sir K.P.Puttanna Chetty
Mandi Hiriyanna
L. Srinivas Iyengar
M. Chengayya Chetty
Ahmed Shet
Shingri Nanjappa
B. K. Garudachar
Orekundi Channabasappa
Rao Bahaddur B.P.Annaswamy Modaliar
D. Banumaiah