Canara is a well known name for many institutions in coastal Karnataka. Of the four public sector banks originated from coastal Karnataka, three had ‘Canara’ as prefix.

According to Ananthakrishna, Chairman of Karnataka Bank Ltd, the coastal belt of the present Karnataka state was known as Canara region during the British rule. People at that time liked to associate their institutions with ‘Canara’.

In 1906, two banks took birth in Canara.

Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur, who was a trader and philanthropist, set up Canara Banking Corporation (Udipi) Ltd in Udupi. Its name was changed to Canara Banking Corporation Ltd in 1939. It went on to become ‘Corporation Bank Limited’ in 1972. After nationalisation in 1980, it was renamed as Corporation Bank.

N.K. Thingalaya, noted rural banker, says that Corporation Bank was a cosmopolitan bank since inception as its shareholders were from all communities and different sections of society.

Ammembal Subba Rao Pai, who was a layer and educationist, established Canara Hindu Permanent Fund Ltd in Mangalore in 1906. It was renamed as Canara Bank in 1969.

Thingalaya adds that the first meeting of the board of directors had decided to keep the bank open for business between 8-11 am and 2-5 pm on weekdays during those days.

In 1925, Upendra Ananth Pai, Vaman Kudva, and T.M.A. Pai started a joint stock company called Canara Industrial and Banking Syndicate Ltd in Udupi. The name was changed to Syndicate Bank Ltd in 1963.

Syndicate Bank was an innovative bank from the beginning making rural banking its forte. The bank introduced pigmy deposit scheme in 1928 and collected very small amount of savings (almost Re 0.25) from the doorsteps of customers then, Thingalaya adds.

vinayak.aj@thehindu.co.in