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State Bank Of Mysore Company History and Annual Growth Details

1913 - The Bank was established as 'Bank of Mysore Ltd.', on the 19th May, and commenced its
business on the 2nd October 1913, under the patronage of His Highness the Maharaja of
Mysore, with an authorised capital of Rs.20.00 lakhs.

1953 - During the year, the Bank was appointed as an Agent of the Reserve Bank of India to conduct
Government business and treasury operations.

1959 - With effect from the 10th September, the Bank was constituted as State Bank of Mysore as
a Subsidiary of the State Bank of India, under State Bank of India (Subsidiary Banks) Act,
1959 enacted through an Act of Parliament, (Act No. 38 of 1959).

- The bank has formulated schemes for (i) financing coffee planters/coffee traders against
coffee curers certificate, (ii) financing coffee traders, (iii) coffee exporters and (iv) coffee
curers who also engage in trading.

- State Bank of Mysore has various deposit schemes to cater to the requirements of its customers.

- The Bank has also actively participated in all Government sponsored schemes and
contributed its share of financial assistance or the economically weaker sections through
DIR, IRDP, Prime Minister's Rojgar Yojna and SUME schemes.

- The Bank has sponsored two Regional Rural Banks, Cauvery Grameena Bank and Kalpatharu
ameena Bank which have between them 202 branches for the growth of agriculture and rural

- The Bank, as part of the State Bank Group has been engaged in financing 551 since 1960
and introduced the concept of need based rather than security oriented finance and the
Entrepreneur scheme under which technically qualified persons were financed the entire
requirement upto Rs.2 lacs.

- The Bank has 3 specialised SSI branches to assist the SSI units and proposes to establish
3 more such 551 branches shortly.

- The Bank has correspondent and agency arrangements all over the world and offers
spot services in 18 major approved currencies.

- The Bank's computerised dealing room is equipped with state-of-the-art information
net-work for excellent services to the Bank's customers.

- The Bank also proposed to open 21 NRI service centres to specially cater to the
requirements of NRI customers.

- State Bank of Mysore handles a significant part of the day-to-day banking business of
both the Central and State Governments in the State of Karnataka and is a Banker to
various Public Sector Undertakings in various sectors of the Economy.

- The Bank has been actively participating in welfare banking needs of the public through
its community services.

- The Bank has set up social circles, a voluntary group of employees to conduct the
community service activities, at various centres.

- The Bank is the proud recipient of the Rolling Trophy from the Red Cross Society of
Karnataka for 17 years in succession, till date, for having mobilised the maximum number
of blood donors each year, among Banking Institutions.

- The Bank has installed a Main Frame Computer in its Head Office which provides a
useful information system to the Management and mini computers at the Zonal Offices.

- The Bank is a member of the society for worldwide Inter Bank Financial Telecommunication
(SWIFT) which was established to offer cost effective and fast transmission of financial
messages globally, 2 branches of the Bank are presently covered under the scheme and
an additional 15 branches are proposed to be covered under SWIFT shortly.

1992 - The State Government has also taken up vigorously 'ASHRAYA', a new housing
scheme for the weaker sections and 'VISHWA', a new rural and cottage industry scheme.
A new programme called 'AKSHAYA' has also been launched to help the children in
primary education. The Konkan Railway Project and the New Mangalore Port
Project are also progressing satisfactorily.

- The Bank has also been assisting Small Scale industries by offering technology and financial
consultancy services to the units in its books, so as to enable them to overcome the problems
of technological obsolescence, marketing, management etc.

- The Bank has been given a special annual award by the Karnataka Unit of the Indian Red
Cross Society for the fourteenth time for having held the most number of voluntary blood
donation camps.

1994 - Several important measures have been introduced in the busy season credit policy of
November 1993 and slack season credit policy of May 1994, announced by Reserve
Bank of India.

- The Bank extended rehabilitation finance to 54 such units during the year
under review.

- The Bank's STREE SAKTHI PACKAGE designed exclusively for women
continued to be implemented with full vigour.

- The Bank also proposes to introduce Automated Teller Machines (ATM) and
Electronic Funds Transfer facility during the next year as a measure of offering state
of the art banking services to its customers.

2000 - Mr. M. Sitarama Murty has been appointed as Managing Director, of the Bank.

- Crisil has reaffirmed the A+ and P1+ ratings assigned to the bond issue and the CD
programme of the bank.

2001 - State Bank of Mysore has opened a foreign exchange cell at its Hirehally Industrial estate
branch in Tumkur district to enable small-scale industrialists to manage their foreign exchange

- The Bank has closed its issue of unsecured non-convertible debentures after raising the target
of Rs 60 crore.


-Enters the market with a coupon of 6.4% per annum for its Tier-II capital bonds issue of Rs.60cr
on a private placement basis.

-Slashes interest rate on domestic term deposits and on NRE deposits by 25-50 basis points.


-Considers new method of appraisal for lending to the agricultural sector more on the lines of
industrial credit given to trade and commerce.

-Declared a dividend of 40% on equity capital for the year ended.

-Ties up with HMT Ltd and launches SBM-HMT Agri Farm Scheme, to promote agricultural mechanisation in south India.

-Maruti Udyog forges alliances with SBM to offer car finance.

-Slashes floating home loan rates and the new loan is as follows:
maturities up to 5 five years, the rates would be 8 per cent, for maturities up to 10 years, the rates would be 8.75 per cent on a floating rate basis and for above 10 years, 9.25 per cent. The fixed rate housing loans remained unchanged. Farm lending rate up to Rs 50,000 was lowered to 9 per cent

-Inaugrated two branches in hyderabad.


-SBM join hands with LTJD for tractor financing

-State Bank of Mysore has informed that Shri M. Sitarama Murty, Managing Director of the Bank retired from the services on December 31, 2003 on attaining super-annuation

-Mr. Vijayanand assumes charges as Managing Director of the bank from 01/03/2004

-State Bank of Mysore has joined the Real Time Gross Settlement Systems (RTGS) network that facilitates inter-bank funds settlement on 22 July


-SBM unveils new single window system


-Mr P.P. Pattanayak has assumed charge as Managing Director of the State Bank of Mysore. Mr Pattanayak was earlier Deputy Managing Director (DMD) and Chief Credit Officer of the State Bank of India, Mumbai.


- The Company has splits its face value from Rs100/- to Rs10/-.
Oct 24, 10:45 am
Oct 24, 10:54 am
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