Banking saga: history of South Kanara Banks

South Kanara in Karnataka has a unique position in the banking map of the country. It has one of the largest number of branches operating in any district. It is the cradle of 23 banks. Four out of the 19 nationalised banks have originated from this district. These banks came into existence through private initiative and supported by an enlightened society. There were no industrial houses in the district nor was it very prosperous when the banks started appear ing on the scene. Many districts in India were devoid of banking facilities when the South Kanara banks were spreading out into district, far and near.
The volume of business initially handled by many of these banks would appear to be incredibly low by comparison with the current level of business. Dealing only in a few thousands of rupees, some of the now defunct banks were subsisting on a slender margin of profits. But they had their own individuality, board of directors, branches, staff and clientele. The very existence of these mini banks despite their short span of life was instrumental in cultivating the banking habits among persons from different walks of life in the district. The bigger banks were successful in fostering the custom ers' affinity on a larger scale. But each bank was managing - some of them struggling to build up its own customer base. Operating their branches for over 60 to 75 years, some of them have served two generations of customers.