Serving the Community with Trust Since 1924
The bank was established under the then British Raj cooperative laws. After independence, it continued to operate under the cooperative laws in force in the united Madras state. After the formation of the state of Andhra Pradesh, it continued to operate under the Andhra Pradesh Cooperative Societies Act, 1964, which is currently in force. The cooperative branch officers used to conduct the administrative matters of the bank and the management of banking activities completely within the scope of the cooperative law. Later, in January 1987, after obtaining the permission of a banking license from the Reserve Bank of India, since then, banking activities have been carried out under the scope of the Reserve Bank as per the Banking Regulation Act, 1966, which was already in force. In this act, the law was applied to cooperative banks only to a certain extent. Later, according to the Banking Regulation Act amendment held in 2020, the entire Banking Regulation Act was applied to urban cooperative banks and urban cooperative banks were brought completely under the purview of the Reserve Bank. The entire authority of the governing body and banking operations has been taken over by the Reserve Bank. At present, the Reserve Bank conducts periodic inspections once every two years and the Cooperative Department officials once every six months. In addition, concurrent auditors conduct continuous audits. Statutory audit is conducted by a recognized firm of chartered accountants as per the Reserve Bank's rules.
This bank was started with a share capital of Rs. 410/- and 30 members at that time. The share capital at that time was The value of the bank was only one rupee. Since then, the bank has gradually received share capital, and the number of members has increased along with the growth of share capital. In the first year, the bank earned a net income of Rs. 2/-.
After that, in June 2011, Shri Y. Vidyasagar was elected as the President of the Bank. He was re-elected as the President of the Bank in the subsequent elections held in 2016. With the help of Executive Officer P.V. Prasad and Bank Sibba, the tireless efforts of President Shri Y. Vidyasagar made a significant contribution in introducing technology in the Bank for the first time and providing banking services on par with commercial banks. As part of these services, the Core Banking System was introduced in the Bank. This system provided the facility to handle transactions in the Town Bank account branch. With the support of HDFC Bank, CTS (C Truncation System) and online services such as RTGS, NEFT and IMPS services were introduced.
Moreover, with the support of ICICI Bank, it became the first urban cooperative bank in the united Chittoor district and the second bank in Rayalaseema to launch ATM facility in 2018. The state bank is well recognized.
In hundred-year journey, Madanapalle Co-operative Town Bank has faced many crises, and the services of the bank's chief executives and bank employees who have served at various times, who have rendered their exceptional services to move forward without any setbacks, are memorable.