To trace the course of a river from its source, even if only on a map, can be a fascinating occupation; to follow the germination of an idea from its conception to the point at which it emerges in practical form can also be an interesting exercise. The establishment of TNSC Bank in 1905 was not a chance event, neither was it the result of a mammoth deal brought off at a single stroke. It was rather the fulfilment of a long cherished idea which developed and took shape over a period of years, motivated step by step by a single mastermind like Sir P Rajagopalachariar who was the first Registrar of Cooperative Societies in the old Madras Presidency. The idea of organizing a bank for financing Cooperative Credit Societies emanated from Sir P Rajagopalachariar.
In this grand mission, the man who guided him was Dewan Bahadur S Subramania Iyer (1842-1922). It was a brilliant and original idea because the Cooperative Societies Act X of 1904 which became law on 25 March, 1904, whether by design or oversight, merely contemplated the establishment of Primary Societies which were expected to finance themselves. It was Sir V C Desikachariar, the first Secretary of the Madras Central Urban Bank Limited (the great grandfather of today’s TNSC Bank) who gave a practical shape to the proposals formulated by the first Registrar of Cooperative Societies Sir P.Rajagopalachariar.
The Government of Madras in
GO Ms. No. 1022, Revenue, dated 19.10.1905 accorded the necessary sanction for the creation of the Madras Central Urban Bank Limited.
ON 23 NOVEMBER 1905, Sir P.Rajagopalachari, THE REGISTRAR OF COOPERATIVE SOCIETIES REGISTERED THE BANK UNDER THE COOPERATIVE SOCIETIES ACT OF 1904 (See Below). The Bank started functioning on 26 November, 1905. The First General Meeting of the Members of the Bank was held at “Devonshire House”, the palatial residence of Dewan Bahadur SSubramania Aiyar (later Hon. Justice Sir S. Subramania Aiyar) on 26 November, 1905—the very first day on which the Bank commenced its business. The Initial Authorised Share Capital was Rs 25,000/- divided into 50 shares of Rs 500 each. The first loan of the bank was disbursed to No. 21 Big Kancheepuram Urban Weavers Union on 14.2.1906. The first Fixed Deposit was received on 14.3.1906. The Bank’s first accounting year ended on 31.3.1906 with a net profit of Rs.20 - 9 annas - 0 paisa.
In the
First Stage (1905-1917) the Shareholding in the Bank was confined entirely to individuals. By the end of December, 1911, the Bank had become well established and its foundation was well laid. The Working Capital of the Bank then stood at Rs 16 lakh. In March 1910, the Authorised Share Capital of the Bank was raised to Rs. 1 lakh, comprising of 1000 ordinary shares of Rs 100 each. From 1905 to 1911, loans aggregating over Rs 29 lakh were disbursed to Primary Cooperative Societies. On 1 July, 1911, a
Department for Current Accounts was opened. Until then only
Fixed Deposits were accepted by the Bank. Some outstanding developments took place in 1909-10. Salem District Urban Bank was registered on 25 January, 1909, Cooperative Supervising Union at Utramerur was registered on 5 August, 1910, and Coimbatore District Urban Bank was registered on 16 September, 1910.
In the
Second Stage (1917-1920) pursuant to the
Report by Maclogan Committee on Cooperation, the General Body of the Bank decided on 31.3.1917 to admit Cooperative Societies as Shareholders of the Bank. Prudential and Savings Deposits were accepted by the Bank for the first time in 1917.
In the
Third Stage (1920-30)
the Madras Central Urban Bank emerged as a real
Federation of Central Cooperative Banks, styled as the
“Madras Provincial Cooperative Bank Limited”. The response from the Primary Cooperative Societies to avail themselves of the offer of admission to the Membership of the Bank was not adequate.
Taking note of this fact, Hemingway, the Registrar of Cooperative Societies in 1919, proposed a new scheme of a far reaching character for federating the Central Banks into a higher Central Organization of their own. In short, his proposal was to convert the Madras Central Urban Bank into a real Provincial Apex Bank. From 1 July, 1920, Central Cooperative Banks alone were admitted as shareholders of the Bank. The Bank moved to its own premises at Luz Church Road on 1 February, 1921. THE BANK’S FIRST BRANCH IN CHENNAI CITY WAS OPENED ON 17.2.1921 AT ARMENIAN STREET IN GEORGE TOWN.In the
Fourth Stage (1930-1956)
the Madras Central Urban Bank underwent a great structural transformation. The
Silver Jubilee of the Bank was celebrated in a grand manner on 20 July 1931. By a Resolution passed at the General Body Meeting of the Bank held on 18th June 1931, the name of the Bank was changed as
“THE MADRAS PROVINCIAL CO-OPERATIVE BANK LIMITED”. On
1 October 1937, the Head Office of the Bank moved into the “College House” building (the very site where the Head Office of the Bank is now functioning) and the Town Branch on Armenian Street, was merged with Head Office. The old Head Office of the Bank at Mylapore was converted into a Branch. During the period from 1937-1940, the Bank opened 3 New Branches in the very important localities of Madras City – Mylapore, Egmore and Triplicane.
In the
Fifth Stage (1956-1970), the Government of Tamil Nadu became a share-holder of the Bank on 27.3.1957 in pursuant to the recommendations of the All India Rural Credit Survey Committee of the Reserve Bank of India.
Consequent on the re-naming of our State as Tamil Nadu in 1970, the name of the Bank was also changed as “The Tamil Nadu State Co-operative Bank Limited” in the same year.After 1960-61,
The Tamil Nadu State Co-operative Bank entered the field of industrial finance. Innumerable
Co-operative Spinning Mills and Co-operative Sugar Mills were financed by the Bank by way of
Working Capital Loans, Term Loans, Bridge Loans etc. The norms and the standards set and enforced by TNSC Bank for industrial financing in these sectors became ‘the model’ for the rest of the country.
In the
Sixth Stage (1970-1976) we notice that the Tamil Nadu Co-operative Societies Act was amended with effect from 17th October 1970, to provide representation to the
‘weaker sections’ of the society in the Board of Management of the Bank. For the first time, a
Special Officer of the Bank with power to exercise any or all of the functions of the Board of Management was appointed under the Tamilnadu Cooperative Societies (Appointment of Special Officers) Act, 1976 on 10 June, 1976. Thiru M. Ahmed, I.A.S. was appointed as Special Officer.
In the
Seventh Stage (1976-1980), the Special Officer of the Bank was also assigned the duties of the Managing Director of the Bank and thus he became Special Officer and Managing Director of the Bank. In the (1989-1987), the TNSC Bank started financing
National Consumers Cooperative Federation, a national level organisation.
The Ninth Stage (1987-1998) saw the TNSC Bank focus on
Training and Human Resource Development.
Progress is a permanent movement and not a temporary condition; a continuing journey and not a static harbour. TNSC Bank is no exception to this rule. On 26.11.2007 this great Bank has completed 102 years of useful service to the farmers and weavers of Tamilnadu by extending the required credit in the manner and measure required through the various Cooperative Institutions like the District Central Cooperative Banks, Primary Agricultural Cooperative Banks and Primary Weavers Cooperative Societies. As a Commercial Bank, the TNSC Bank today is known for the outstanding quality of its personalized customer service in all its Branches in Chennai City. Customers can be one and held only through a multitude of acts and attitudes. The Bank Officers and staff have succeeded in creating a mental and emotional climate of friendliness and goodwill towards all customers in every Branch, making every aspect of banking transaction a joyous and happy adventure.
istorical research and a passable literary style. Some get written by the founders or their successors—men who have played leading roles in an Institution’s development. Others again appear in print in such a way that after a few years nobody can remember who did the actual writing, who commissioned the work or indeed why it should have been written. As a free lance journalist, I do not come under any of these categories. My interest in the growth of this Bank arose in 1988 when I was serving as Secretary to the Government of Tamilnadu in the Department of Co-operation. I am, however, confident and hopeful that my story relating to the exciting birth, growth and development of The Tamilnadu State Apex-Cooperative Bank (TNSC Bank), which has just completed 102 years of useful and purposeful service with a mission, will serve to disarm the critics and do away with any uninformed speculation about the role and origins of TNSC Bank. 
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