State Bank of Mysore
Corporate brand
UnclaimedA former Indian public-sector bank and State Bank of India associate that operated principally in Karnataka and merged into SBI in 2017.
Last updated August 26, 2026
Overview
State Bank of Mysore was an Indian public-sector commercial bank headquartered in Bangalore, Karnataka. Its origins lay in Bank of Mysore Ltd., established in 1913 under the patronage of Maharaja Krishna Raja Wadiyar IV. The institution was created following the recommendations of a banking committee associated with engineer and statesman Sir M. Visvesvaraya, reflecting the effort to build formal financial infrastructure in the princely state of Mysore. The bank began operations on 2 October 1913 and gradually developed from a regional institution into a broad-based commercial bank. In 1953 it was appointed an agent of the Reserve Bank of India for government banking and treasury operations. A major structural change followed in 1959, when legislation reorganized it as a subsidiary of State Bank of India. From that point it operated as one of the associate banks within the State Bank Group, retaining its own name, branch network and management while benefiting from its connection to India’s principal public-sector banking group. State Bank of India ultimately held 92.33 percent of its shares. State Bank of Mysore’s business covered retail deposits and lending, corporate and commercial banking, agricultural finance, small-scale industry and overseas or foreign-exchange services. Its regional strength was Karnataka: according to reported June 2014 figures, 772 of its 976 branches, or approximately 79 percent, were located in the state. It also maintained branches and regional offices in other Indian centers, including Chennai, Coimbatore, Hyderabad, Mumbai and New Delhi. The bank handled government business in Karnataka and acted as a banker to public-sector undertakings, while also supporting agriculture, rural industries, small businesses and government-sponsored development schemes. Its historical lending role extended beyond conventional secured finance. The bank participated in programs aimed at economically weaker groups and rural borrowers, including the Differential Rate of Interest scheme, the Integrated Rural Development Programme, Prime Minister’s Rojgar Yojana and schemes for small and emerging entrepreneurs. It sponsored regional rural banking initiatives, including the institutions that later combined to form Kaveri-Kalpatharu Gramin Bank. It also developed sector-specific financing for coffee growers, coffee traders, curers and exporters, an important activity in southern India, and worked with equipment and automobile companies on agricultural mechanization and vehicle finance. During the 2000s the bank modernized its infrastructure. It joined India’s Real Time Gross Settlement network in 2004, completed full computerization and introduced core banking in 2005, and expanded technology-enabled and single-window services. It also raised capital through debt instruments, offered foreign-exchange facilities to industrial customers, and maintained correspondent and agency relationships outside India. These initiatives complemented its traditional regional banking role rather than turning it into a globally branded bank. State Bank of Mysore marked its centenary during 2012–2013. Its independent corporate life ended after the Government of India approved the consolidation of the State Bank Group. Effective 1 April 2017, it was merged with State Bank of India along with the other remaining associate banks. The merger transferred its operations, employees, branches and customers into SBI and eliminated State Bank of Mysore as a separate banking brand and listed company.
History
State Bank of Mysore began as Bank of Mysore Ltd. in 1913. It was established on 19 May with authorized capital of 20 lakh rupees and opened for business on 2 October of that year. The bank was created under the patronage of Maharaja Krishna Raja Wadiyar IV and at the initiative of the banking committee associated with Sir M. Visvesvaraya. Its original purpose was to strengthen organized banking in Mysore and support the commercial and developmental needs of the region. In 1953 the institution became an agent of the Reserve Bank of India for government business and treasury operations. This role gave it an important public-finance function in the state and helped expand its institutional relationships. The State Bank of India (Subsidiary Banks) Act, 1959 brought another decisive change. With effect from 10 September 1959, the bank became State Bank of Mysore and a subsidiary of State Bank of India. It subsequently operated as an associate bank within the State Bank Group. SBI held 92.33 percent of its shares, while the bank’s securities were traded on the Bangalore, Chennai and Mumbai exchanges. The bank developed a strong Karnataka franchise. It maintained a large branch presence in the state and regional offices in cities including Bangalore, Mysore, Mangalore, Mandya, Hassan, Shimoga, Davangere, Bellary, Tumkur and Kolar. It also extended operations to Chennai, Coimbatore, Hyderabad, Mumbai and New Delhi. In June 2014 it was reported to have 976 branches and 10,627 employees, with 772 branches in Karnataka. Its activities included deposits, retail and corporate lending, government banking, agricultural finance, rural development, small-scale industry finance and foreign exchange. Agriculture was a recurring focus. The bank financed coffee planters, traders, curers and exporters and later explored appraisal methods for agricultural lending that placed greater emphasis on the borrower’s business requirements rather than collateral alone. It participated in government-sponsored programs for lower-income groups and rural development, including the Differential Rate of Interest scheme, the Integrated Rural Development Programme, Prime Minister’s Rojgar Yojana and small-entrepreneur initiatives. It also sponsored Cauvery Grameena Bank and Kalpatharu Grameena Bank, which were subsequently combined to create Kaveri-Kalpatharu Gramin Bank, headquartered in Mysore. During the 1990s the bank supported public development programs involving housing for economically weaker sections, rural and cottage industries, primary education and regional infrastructure. It also handled banking business for central and state government bodies and served public-sector undertakings. International connectivity expanded through correspondent and agency arrangements, foreign-exchange facilities and participation in the SWIFT financial messaging network. The early twenty-first century brought additional product and operational changes. In 2001 the bank opened a foreign-exchange cell at its Hirehally industrial-estate branch in Tumkur to assist small industrial firms. In 2002 it raised Tier-II capital through a private placement bond issue and adjusted deposit rates. In 2003 it partnered with HMT on an agricultural mechanization financing scheme and with Maruti Udyog on automobile finance. It joined the RTGS network in 2004, introduced full computerization and core banking in 2005, and developed a single-window service model. The bank also raised capital through unsecured non-convertible debentures and later split its share face value from 100 rupees to 10 rupees in 2009. The bank celebrated its centenary from 2 October 2012 to 1 October 2013. Its independent history ended in the next phase of State Bank Group consolidation. The Government of India combined State Bank of Mysore with State Bank of India and the other associate banks, with the merger taking effect on 1 April 2017. The transaction absorbed the bank’s network and business into SBI and removed State Bank of Mysore as a separate legal and commercial brand.
- 2017
Merged into State Bank of India
[1]The merger with State Bank of India became effective on 1 April, ending the bank’s separate existence after 104 years.
- 2013
Centenary year
[1]The bank celebrated its hundredth year during October 2012–October 2013.
- 2005
Introduces core banking
[1]Full computerization and core banking services were introduced, alongside a single-window service initiative.
- 2004
Joins RTGS
[1]The bank joined India’s Real Time Gross Settlement network on 22 July.
- 1959
Becomes State Bank of Mysore
[1]Under the State Bank of India (Subsidiary Banks) Act, the bank became an SBI subsidiary with effect from 10 September.
- 1953
Appointed Reserve Bank of India agent
[1]The bank began handling government business and treasury operations as an agent of the Reserve Bank of India.
- 1913
Bank of Mysore Ltd. is established
[1]The institution was established on 19 May and began business on 2 October under the patronage of Maharaja Krishna Raja Wadiyar IV.
Products and positioning
A Karnataka-centered public-sector commercial bank combining regional market knowledge with the infrastructure and public ownership of the State Bank Group.
Banking services
Retail banking
The bank provided deposit accounts, domestic term deposits, consumer lending and other everyday banking services through its extensive branch network, particularly in Karnataka. Retail operations were supported by the State Bank Group infrastructure and later by computerized and core-banking platforms.
Agricultural banking
Agricultural and rural finance
Agricultural finance covered cultivators, rural businesses and sector-specific borrowers. The bank financed coffee planters, traders, curers and exporters, participated in government development programs and supported rural industries and weaker sections through directed-lending schemes.
Commercial lending
Small-scale industry and entrepreneur finance
State Bank of Mysore maintained specialized SSI branches and offered finance to small industrial enterprises. Its entrepreneur-oriented approach sought to fund technically qualified applicants on the basis of business need, not solely on traditional security requirements.
Public-sector banking · 1953
Government and treasury banking
After becoming a Reserve Bank of India agent, the bank handled government receipts, payments and treasury operations. It continued to conduct significant day-to-day banking for central and Karnataka state institutions and served public-sector undertakings.
Transaction banking
Foreign-exchange services
The bank offered foreign-exchange facilities, international correspondent and agency services and spot transactions in major approved currencies. Its 2001 foreign-exchange cell at Hirehally was intended to help small industrial customers manage overseas transactions.
Asset finance · 2003
Agricultural equipment and vehicle finance
Partnership programs included an SBM-HMT agricultural mechanization scheme and an arrangement with Maruti Udyog for car finance, extending the bank’s lending reach into equipment and consumer-vehicle purchases.
Brand decisions
2017
Consolidate with State Bank of IndiaM&ABackground
The Government of India pursued consolidation of the State Bank Group by combining SBI with its remaining associate banks.
Action taken
State Bank of Mysore was merged into State Bank of India with effect from 1 April 2017.
Aftermath
Its legal identity, separate listing and independent brand ended, while its branches, employees and banking operations were absorbed into SBI.
2005
Implement full computerization and core bankingStrategyBackground
Indian banking was moving from branch-specific systems toward integrated, technology-enabled operations.
Action taken
State Bank of Mysore introduced full computerization, core banking and a single-window service model.
Aftermath
The initiatives supported more integrated account and transaction servicing across the branch network.
1959
Join the State Bank of India subsidiary-bank structureStrategyBackground
The Indian banking system was reorganized through the State Bank of India (Subsidiary Banks) Act, creating a formal institutional relationship between regional banks and SBI.
Action taken
Bank of Mysore Ltd. was constituted as State Bank of Mysore and became an SBI subsidiary with effect from 10 September 1959.
Aftermath
The bank retained a regional identity while operating as an associate institution within the State Bank Group for the rest of its independent history.
Recent events
- 2017
State Bank of Mysore merges into State Bank of India[1]
M&A
State Bank of Mysore was consolidated into State Bank of India with effect from 1 April 2017, ending its independent existence.
- 2013
State Bank of Mysore marks its centenary[1]
Other
The bank commemorated 100 years of operations during the period from October 2012 to October 2013.
- 2005
State Bank of Mysore completes computerization and core banking rollout[1]
Product launch
The bank introduced full computerization and core banking services as part of its operational modernization.
- 2004
State Bank of Mysore joins the RTGS network[1]
Product launch · Other
The bank joined India’s Real Time Gross Settlement system, enabling faster interbank fund transfers.
Sources1 sources
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