Bhagyodaya Co-Operative Bank Ltd

History Of Banking

The bank is a financial institution and the main function of the bank is to lend money to the borrowers and to get deposits from the customers.

The history of the banking sector is very old. In 1406, the first modern bank was founded in Italy under the name of Banco di San Giorgio.

The first Co-op. bank was established in Germany. The common man was associated in establishing the Co-op. financial institution in the said country. Slowly and gradually the Co-op. bank started to finance different industries and also to have different types of deposit accounts.

The function of the Co-op. bank in Germany was quite satisfactory. So to establish such type of movement in India, Sir Fadrick Nicolas was sent to Germany and Europe for study of the set up of Co-op. banks.

Shri Fadrick visited co-op. bank and also viewed minutely the establishment of Co-op. Societies handling banking activities. He submitted the detailed report on Co-op. banks and its set up for such type of movement in India.

British Government studied the report of Mr. Fadrick and decided to start such type of activities in India for better economic position of the poor farmers. First such society was established in 1904 and the same was revised in 1912 & 1925.

The history of Co-op. society particularly of Gujarat is very old. The socialist workers of Baroda established a nagrik dhiran sahkari mandali in 1889 for its members. This organisation was knwon as Anyonay Sahaykari Mandali Ltd. This was the first co-op. financial organisation particularly in Gujarat and first also in India.

Later on, this society was converted into the Co-op. Bank known as Anyonay Co-op. Bank with limited liabilities in 1951. This bank was given new shape and administration so that the banking activity can encompass different aspects. Thus, first co-op. bank in real sense was existed in Gujarat in the year 1951.