Seventh largest public sector bank carries a legacy of over a century
The Hindu
Indian Bank, established in 1907, is a leading financial institution in India with a legacy of over a century.
Indian Bank, which was established on March 5, 1907 and officially started operations on August 15, 1907, has a legacy of over a century. It has navigated several economic crises, becoming a leading financial institution in India. As on September 30, 2024, Indian Bank is the seventh largest public sector bank with a total business of ₹12.44 lakh crore.
On November 2, 1906, a circular went out, inviting people to share their views on starting a “Native Bank in Madras”. The immediate trigger was the failure of the Madras-based Arbuthnot Bank in 1906, which caused misery to depositors, with a cascading effect on the local economy, according to details from the bank.
“Also, at the time of the failure of Arbuthnot Bank, the Swadeshi Movement was launched at the Calcutta session of the Indian National Congress in 1906. The establishment of the bank reflected the nationalistic desire for a reliable, Indian-managed financial institution,” say Indian Bank officials. V. Krishnaswamy Iyer, a prominent Madras lawyer, played a pivotal role in the establishment of the bank. S.Rm.M. Ramaswami Chettiar, one of the bank’s first directors, went on to become its inaugural chairman. Raja Sir Annamalai Chettiar, a highly respected leader, joined the board in 1915, contributing significantly to its growth and development.
The head office was initially opened in Parry’s Buildings at Parry’s Corner. As the operations grew, the head office was shifted to the Bentinck’s Building on North Beach Road (now Rajaji Salai) in July 1910. Subsequently, it was shifted in May 1970 to 31, Rajaji Salai (now renumbered as 66, Rajaji Salai, Chennai-600001). The bank started out with an initial capital investment of ₹8 lakh.
In 1907, the bank’s emblem featured a banyan tree, symbolising overall progress, expansive growth, and continuous prosperity. Another component of the emblem was the frontal view of an elephant, with a long trunk symbolising the bank’s strength. In July 1978, the bank adopted its current logo, featuring three arrows that symbolise savings, investment, and surplus. The bank opened its second branch in Madurai on December 14, 1908, followed by the third in Coimbatore. It expanded internationally with the establishment of its first overseas branch in Colombo, Sri Lanka, in 1932. It went on to open a branch in Singapore in 1941.
Before Independence, Indian Bank played an important role in financing local businesses. In 1947, the bank had 73 branches with a total business of ₹27.85 crore and a net profit of ₹0.78 crore. After Independence, it financed industries and offered financial services. The bank’s business, which stood at ₹27.85 crore in 1947, grew to ₹161.43 crore by the time of its nationalisation in 1969.
In the 1950s, the bank introduced savings and current account services, followed by fixed deposits in the 1960s. The 1980s marked the arrival of ATMs and debit cards, and in the 1990s, online banking and home loans were introduced.
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